Samsung Mulls Supply Chain Diversification, Eyes Manufacturing Expansion in India to Escape Tariff Woes

Samsung is mulling to follow Apple’s path to move its supply chain to India for the US market amid increasing uncertainty around US President Donald imposed trade tariffs. The South Korean electronics giant is expanding its smartphone manufacturing as production in China has come under pressure following the tariff hike, the Times of India reported.  

“Samsung has production presence in several countries. Uncertainty in the US is currently very high and because of that we have been preparing against a number of different scenarios. We are ready to produce for the US from multiple factories, including India,” Samsung’s global president and chief operating officer, Woo-Joon Choi told TOI.

Samsung’s Supply Chain Diversification 

Samsung is eyeing to diversify its factories both in India and Vietnam ahead of Trump’s final call on tariffs. While the giant’s India factory in Uttar Pradesh’s Greater Noida is primarily utilised for manufacturing that caters to domestic demand, its Vietnam facility is used for export purpose.

Additionally, the company is considering a broader plan to streamline its upcoming supply chain related changes, including setting the correct equipment and getting the required regulatory approval, he reportedly said.

“One of the things that we have prepared was to have diversification of our factories for the product we will ship to the US Depending on the final decision by the Trump administration, we have already established a system in which we can shift from one (location) to another to respond to the final decision more flexibly,” he reportedly said. 

Samsung’s COO highlighted that while tariff pressures might have pushed them for more diversification, the giant has always operated factories at multiple global locations to maintain business stability and offer price stability to consumers.