Recent US tariffs are forcing Asian electronics manufacturers to pivot towards India and Vietnam, reshaping supply chains and creating new manufacturing hubs.
The latest round of US tariffs on electronics imports has triggered a seismic shift in Asia’s manufacturing landscape. Major players like Foxconn are accelerating plans to diversify production away from China, with Vietnam and India emerging as key beneficiaries of this supply chain realignment.
Manufacturers scramble to adapt
According to a recent press release from Foxconn, the company is investing $1.5 billion in new facilities in Vietnam to accommodate shifting production needs. ‘The current trade environment requires us to be more agile in our manufacturing footprint,’ said Foxconn CEO Young Liu in the statement.
Analysts at IDC report that Vietnam’s electronics exports to the US grew 28% year-over-year in Q1 2025, while India saw a 19% increase during the same period.
The China conundrum
While companies are diversifying, China remains crucial to global electronics manufacturing. As noted in a recent Nikkei Asia report, many components still flow through Chinese factories before final assembly in other countries.
‘It’s not as simple as just moving production,’ explains supply chain expert Dr. Lisa Chen in her industry blog. ‘The entire ecosystem needs to shift, and that takes years.’
Emerging winners and challenges
Vietnam’s infrastructure is being tested by the rapid influx of manufacturing investment. The Vietnamese government announced plans last month to accelerate port expansions near Ho Chi Minh City to handle increased trade volumes.
Meanwhile, India is leveraging its Production Linked Incentive scheme to attract more electronics manufacturers. Samsung recently announced it would double its smartphone production capacity in India by 2026, according to company filings.
