Samsung may shift handset production capacity to India, Indonesia

Samsung has reportedly decided to shift some of the manufacturing of its smartphones from Vietnam to India. The South Korean tech giant will work on increasing the manufacturing capacity to 93 million smartphones next year. Samsung, which has multiple popular smartphones like the Galaxy M32 5G, Galaxy A22 5G, etc., currently manufactures over 60 million smartphones in India.

The pandemic and the rising cost of manufacturing in Vietnam has led to Samsung shift some of its production to other countries. Vietnam is home to 61 percent of Samsung’s total production of smartphones, accounting for over 182 million units manufactured in two of the company’s facilities. The company is aiming to reduce this to 50 percent, or around 163 million units per year, according to South Korea’s The Elec.

Moneycontrol could not independently verify the report.

Among the total, 19 million units will be moved to India and Indonesia. Samsung plans to invest $90 million to expand the manufacturing facilities in India, the report added. Following the restructuring, India will manufacture 29 percent of Samsung’s total smartphones worldwide.

Samsung opened the world’s largest mobile manufacturing plant in UP’s Noida in 2018 with the aim to ship over 100 million units a year. The company has also been benefiting from the Indian government’s incentives provided for local manufacturing under the “Make in India” campaign. Last year, it was reported that Samsung will manufacture smartphones worth Rs 2.2 lakh crore, valued over Rs 15,000 per unit, under the production-linked incentive (PLI) scheme. Over the next five years, the company also plans to manufacture mobile phones worth Rs 3.7 lakh crore in India. Moneycontrol