Samsung Electronics Co. is exploring options to relocate its smartphone manufacturing operations away from China, responding to escalating trade tensions and new U.S. tariffs on mobile devices.
The world’s largest smartphone maker is scouting for Joint Design Manufacturing partners beyond China’s borders, with India emerging as a leading alternative. The strategic shift comes after the Trump administration expanded its 10% tariff on Chinese imports to include previously exempt mobile devices.
The Seoul-based company currently produces its premium devices, including the Galaxy S series and foldable smartphones, in-house while relying on Chinese JDM partners for mid-range and budget models targeted at emerging markets. Industry estimates suggest JDM-produced devices account for about 20% of Samsung’s annual smartphone shipments.
Major Chinese manufacturers including Wingtech, Huaqin, and Longcheer currently serve as Samsung’s primary JDM partners. Unlike Original Design Manufacturing, the JDM model allows Samsung to maintain involvement in the design process while reducing fixed production costs.
While Vietnam has traditionally served as an alternative manufacturing hub, analysts note that potential tariff risks make India a more viable option for Samsung’s production needs. The shift could significantly impact the company’s manufacturing footprint and cost structure.
Market observers warn that sustained tariffs could trigger smartphone price increases and subsequent sales declines, pushing manufacturers to reconsider their supply chain strategies. However, Samsung’s JDM migration strategy remains in early planning stages, with no final decisions made.
