Samsung's Strategic Shift Towards India

In response to the looming US tariffs, Samsung is contemplating a significant shift in its smartphone production strategy. The tech giant is considering making India a primary hub for manufacturing smartphones destined for the US market, a move that mirrors its American rival Apple's strategy.

Preparing for Various Scenarios

Won-Joon Choi, Samsung's global president and chief operating officer, highlighted the company's readiness to adapt to the uncertain US tariff landscape. "We have been preparing against a number of different scenarios," Choi stated, emphasizing the flexibility to shift production across global factories, including India, to meet US demand efficiently.

Impact of US Tariffs on Global Production

The potential adjustment in Samsung's production locations comes as the US considers imposing tariffs on imports from Vietnam, currently Samsung's largest export hub for smartphones. India, on the other hand, is seeking lower duties for electronics exports to the US, positioning itself as an attractive alternative for manufacturers like Samsung.

Ensuring Supply Chain Stability

Choi also addressed the challenges posed by restrictions on rare earth minerals from China, assuring that Samsung's diversified supply chain and preparation for various scenarios would prevent any near-term production disruptions.