Samsung Electronics is trying to work out the positive and negative implications of the tariff policies proposed by the US President Donald Trump on raw material supply provision. Samsung has also started on the path toward moving its smartphone manufacturing out of China in order to minimize any possible financial risk.
Reports suggest that Samsung is considering new JDM partnerships outside of China. But the JDM relocation scheme is at an early stage and yet to be decided on. The US had announced a fresh 10% tariff on imports from China, leaving the pressure intact; this means the price of a smartphone manufactured in China could increase, thereby affecting sales.
Where this has traditionally been the alternative production hub for Samsung, tariffs are lurking on the landscape. Therefore it says here, "keeping in view the same risks in the future", that India looks like the new hope for Samsung production.
The JDM model entails a cooperative method of manufacturing whereby Samsung and its partners collaborate in designing products. Currently, Samsung manufactures its premium devices such as the Galaxy S Series and foldable smartphones in-house, while mid-range and budget devices for emerging markets are produced via JDM partnerships. According to the reports, JDM-produced devices accounted for around 20 percent of Samsung's yearly smartphone sales. Key partners in JDM other than Samsung include the Chinese companies Wingtech, Huaqin, and Longcheer.