It seems like ever since Apple has decided to move production and assembling from China to India, even other countries are looking for a better source for production. It is rumored that even Samsung might move a major part of the smartphone production from Vietnam and other countries to India, with a production estimate of over worth $40 billion. Samsung is likely to move the production units to India for manufacturing smartphones under the Production Linked Incentive scheme that the country is providing.
The decision can impact existing capabilities across various countries like Vietnam, which is already a production hub for Samsung. Vietnam is second to China when it comes to smartphone production and most of the smartphone companies are looking towards other countries which can serve as a good option for production plant setup. As per the sources, the PLI scheme could help Samsung to save a very big amount. Samsung currently makes almost half its production in Vietnam. With this move, the company will join the tech giant Apple, which is also in the process of shifting a major production line in India.
The decision of smartphone companies to shift in India is all due to the benefits scheme of PLI which the government is providing and it seems that even more companies are looking forward to this opportunity and are in talks with the government about the benefits they will receive. During the pandemic stage, the companies have understood that they need to have alternatives for their production plants, as situations like these can bring the production to halt, as what happened in China.