Samsung likely to move a major part of its smartphone production to India

Samsung, over the years, has increased its smartphone production in India. The company already operates its biggest factory in the world in Noida. Now, word is that the company is planning to shift a majority of its smartphone production to India.

As per a report by The Economic Times, Samsung is planning to shift its smartphone production from Vietnam and other countries to India and manufacture smartphones worth $40 billion. Sources familiar with the matter said that the company is planning to diversify its production lines for making smartphones to India taking advantage of the government’s PLI scheme.

The company has submitted estimates of manufacturing smartphones worth over $40 billion in India. Out of these, smartphones with factory prices of over $200 will account for $25 billion of the total manufacturing estimates. Most smartphones manufactured under this category will be exported. This plan is expected to have major ramifications for Vietnam, which is the world’s second-largest smartphone producer after China.

In addition to Vietnam, where the company manufactures nearly 50% of its smartphones, the report states that Samsung is planning to wind down its manufacturing unit in South Korea owing to high labour costs in the country.

It is worth noting that Samsung is the second major tech company after Apple that is planning to up its production in India. As per reports, a total of 22 companies have applied to leverage India’s PLI scheme. The list apart from Samsung includes Pegatron, Foxconn and Wistron. All of Apple’s manufacturers have applied for the scheme and are planning to move away from China to India.