Samsung to shift more smartphone production to India – Here’s why
Can India rise back from production difficulties induced by Covid-19 in many large ticket units? This is a question after the second wave of pandemic utilizing India earlier this year, when companies like Apple Assembler Foxconn while moving their manufacturing elsewhere.
Even though the pandemic is still not root, everything looks much better in India with a normal resemblance to return to the production unit. As happened, some top brands now want to regain their production to India in a great way.
Displaying the way is Samsung Major Korea electronics, which is said to reflect on the plan to make India a major foreign base for making smartphones. It is set to pump more than $ 90 million in Indian facilities in Noida — the largest in the world — to increase the amount of production substantially.
This happens because Samsung is reported to work on a restructuring plan to shift some of its smartphone capacity in Vietnam — until now one of the large bases — to India.
Increased labor costs in Vietnam
According to the company’s reorganization plan, as seen by the famous Korean South Korean news site, Elec, Samsung aims to rework its product capacity in seven manufacturing locations, located in South Korea and abroad.
Indonesia is another country that Samsung looks sharp.
According to the report, Samsung, which currently has the capacity to produce 182 million smartphone units in its production facilities in Vietnam, is likely to shift in sequence of millions of units to India and Indonesia, “where the company plans to expand manufacturing facilities.”
Vietnam is actually a place for most Samsung phones made. Samsung has two factories in Vietnam from a smartphone, tablet, and devices that can be used. Most of Samsung’s global supply, including markets like North America and Europe, are from Vietnam. Both of these factories have an annual capacity of 182 million units, contributing 61% of the production of Samsung smartphones, the report said.
And all of this is now set to change because Samsung wants to cut production from here by 11%. That is, Vietnam facilities will only produce 50% (around 163 million units) of the total production of Samsung smartphones.
Increasing labor costs in Vietnam is one reason quoted for Samsung to move to reduce its dependence on the units there.