Samsung move production line from Vietnam to India: New Delhi in search of cheaper labor Samsung is planning to move its production lines from Vietnamese to India. The South Korean based company already has it’s largest manufacturing unit in Noida. Vietnam is the second-largest manufacturer of smartphones after China, where Samsung manufactures roughly half of their devices.
The company plans to manufacture devices worth $40 billion in the next 5 years. Devices with a manufacturing cost of $200 or above are going to be manufactured. These will worth around $25 billion.
Samsung move production line from Vietnam to India – The organization also has its manufacturing units in South Korea as well as Brazil and Indonesia. Due to the high labor costs in South Korea, the company is shifting its production units.
This all was triggered after the border clash between India and China, also because of their trade war with the US. In the global market of smartphones, Apple holds 38% share and 14% in volume whereas Samsung has a 22% market share and 22% in volume.
This global market is worth about $270 billion. In 2019, India’s smartphone market did commerce for around $30 billion.
Major manufacturing contractors of Apple devices are also planning to shift their production lines. Contractors including Foxconn, rising star, strong, and Pegatron have submitted their applications in the Production linked incentive (PLI) scheme.
This scheme plans to produce electronic components worth over Rs. 11.5 lakh crore in the next 5 years. Government officials think that this deal may help them in avoiding cheap goods by the association of Southeast Asian nations which will be a major loophole.
India is being formed into a production hub for companies across the world which is appreciated along with the PLI scheme. Multinational tech companies don’t want to miss these opportunities to establish their manufacturing units here.