[News] Samsung Weighs Premium Sales and Production Shifts Amid Tariff Threats, Cautious on 2H Memory Demand

After withdrawing its Q2 guidance amid rising uncertainty, Samsung’s response to looming tariff threats has caught widespread attention. According to Yonhap News, CFO Park Soon-cheol said the company will focus on boosting flagship sales and may shift production sites to protect profitability.

According to Yonhap, CFO Park outlined Samsung’s game plan for each business unit: the MX (Mobile Experience) unit will push flagship and edge device sales to stay profitable, as chip-related tariffs could drive up costs. On the other hand, Samsung’s Video Display (VD) and Home Appliances (DA) units reportedly aim to soften the blow by expanding premium lines and possibly shifting some production overseas.

Brazil: Samsung’s Next Smartphone Production Hub?

According to the Korea Economic Daily, Samsung’s smartphone production is heavily concentrated in Vietnam (46% tariff rate) and India (26% tariff rate)—both flagged for higher tariffs—while TVs are mainly made in Mexico.

Thus, analysts cited by the report say Samsung’s MX division has eight global production sites and may shift output to Brazil (10% tariff rate) —where tariffs are lower—if Vietnam faces new duties.

Alerts to Possible Memory Demand Drop in 2H25

As for semiconductors (DS division), Yonhap suggests Samsung is keeping it cautious—saying it will closely watch U.S. tariff moves and weigh its options, as per the report. Recently, the company also reaffirmed its U.S. investment plans, sticking to the original schedule for the Taylor plant, with a 2026 launch target.

However, Samsung did warn the heightening tariff threats on memory, saying that uncertainty is rising for the second half due to tariff changes and export controls on AI chips, as per Yonhap. The report, citing Jae-jun Kim, vice president of Samsung’s memory business division, mentions some customers are pulling in orders early, potentially slowing demand later.

Read more

• [News] Samsung Drops Q2 Guidance Amid Tariff Woes, Reportedly Preps for NVIDIA’s Final HBM3E Test in June
• [News] Vietnam Faces 46% U.S. Tariff Threat, Putting Samsung at Risk with Majority of Phones Made There

(Photo credit: Samsung)