In order to diversify its product lines, Samsung Electronics is likely to shift a significant portion of its smartphone production to India from Vietnam and other nations, ET Telecom reported.
The South Korean giant has finalised plans to make devices worth over Rs 3 lakh crore in the South Asian nation, according to people familiar with the matter.
It should be mentioned here that Vietnam is the world’s second-largest exporter of smartphones after China. The company currently makes roughly 50% of its phones in Vietnam, as per industry estimates. It is in the process of winding down manufacturing in South Korea, where labour costs are high. In addition, it has manufacturing bases in Brazil and Indonesia.
Government officials said Samsung’s move would also help plug a major loophole in India’s efforts to find ways to eschew cheap imports from Association of Southeast Asian Nations (ASEAN) countries to India.
Once Samsung’s move materializes, the company will join the iPhone maker, which is also in the process of shifting a major part of its smartphone production line to India.
Two weeks ago, Union Minister Ravi Shankar Prasad had announced that 22 companies — including Samsung, Lava, Foxconn, Wistron, Dixon and Pegatron — had filed their applications under the Production-linked incentive scheme, which is aimed at boosting electronics manufacturing and weaning away global manufacturers from countries like China and Vietnam.