Samsung phones and their Manufacturing factories: China lost its place but India still has hidden potential

April 2, 2023

3 min read

Samsung phones dominate the world market beside Apple and the company is the largest manufacturer of smartphones worldwide. The company shipped nearly 300 million units just last year, according to data from several industry trackers. As you might imagine, producing more than a quarter of a billion devices annually calls for a sizable manufacturing network.

The business operates factories in a number of different nations. However, it doesn’t really matter where Samsung phones are manufactured. All of Samsung’s factories adhere to the same quality standard.

This year, Samsung closed its final smartphone factory in China. The company stopped producing phones in the People’s Republic in 2019. Samsung had two factories in China before, but it had to reduce output as the country’s market share fell below 1%. Samsung no longer sees any financial benefit from producing its phones in China. That’s why it stopped doing that at this point.

The majority of Samsung phones are produced in Vietnam.

In the Vietnamese province of Thai Nguyen, Samsung has two factories that produce smartphones, tablets, and wearable technology. To increase its output in the nation even more, the company is currently building a second factory. 120 million units are produced annually by the current factories. Vietnam is the primary source of Samsung’s global supply, including that for regions like North America and Europe.

India is home to not only Samsung’s largest mobile factory, but also the largest manufacturing facility for mobile phones globally, measured by production capacity. Samsung had previously declared in 2017 that it would spend $620 million to double the production of smartphones in India. In 2018, it opened the factory in Noida, Uttar Pradesh. This factory can currently produce 120 million units annually.

The Indian market will receive a large portion of the supply. For Samsung, it is one of the most lucrative markets for its Samsung phones. Samsung needs domestic production in order to successfully compete against its rivals on price, given the import taxes in the nation.

Additionally, the company has been producing its Galaxy M and Galaxy A series phones here. Samsung may also export smartphones made in India to markets in West Asia, Africa, and Europe.

Samsung does have manufacturing facilities in South Korea, where it is headquartered. Additionally, that is where the majority of the components it purchases from its sister companies are produced. However, less than 10% of global shipments come from its South Korean smartphone manufacturing facility. Samsung phones produced here are primarily for the local market.

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