Vietnam Lose Out As Samsung Double Phone Production In India
Tech giant Samsung are aiming to near double their phone production capacity in India by 2026, going from 60 million units to 108 million.
A leaked reorganisation plan shows it is part of a bid to reduce how much of its phone production sites in seven countries output to below 30 per cent of their current total, as part of a long-term aim of risk distribution.
This means the capacity in Vietnam – where they have two factories –will be dropped to 163 million units a year by the same time.
The gradual shift means Samsung’s single factory in India will become its largest sometime around 2024.
Currently, the output in countries where Samsung produce is 182 million units in Vietnam, 60 million in India, nine million in Indonesia and 28.8 million in Brazil.
They plan to reduce this sequentially by 2026 so each major site accounts for less than 30 per cent of its annual total, so Vietnam will account for around 20 per cent of its total production, while India will land 25 per cent.
This provides a focus on India, which is the second-largest market for phones after China.