Samsung Electronics: The last mobile phone factory in China has been shut down at the end of September



According to Reuters reported on October 2, South Korea's Samsung Electronics said on Wednesday that it had suspended production of the Chinese mobile phone factory by the end of September. The company said that suspending production at the only mobile phone factory in China was a "difficult decision" to improve efficiency. It is understood that Samsung Electronics said that the last mobile phone factory in China is located in Huizhou, Guangdong. In June this year, some media reported that Samsung has started the layoffs of Huizhou Samsung Electronics Co., Ltd., and said that Samsung plans to close the Huizhou factory in September 2019.




  It is reported that Huizhou Samsung Electronics Co., Ltd. was established on December 2, 1992 with a total investment of 190.7 million US dollars. Its factory area is 120,000 square meters and the construction area is 35,000 square meters. In June, the plant's smartphone production capacity was approximately 400,000 units per month.

  Samsung once owned three mobile phone manufacturing plants in China, and two other mobile phone factories in Shenzhen and Tianjin have been closed in 2018.

  Shenzhen Samsung Electronics Co., Ltd. was cancelled in April 2018. Except for the six Korean high-level executives, all employees were dismissed at the end of April, and the number of severances was about 320. Tianjin Samsung Motor Co., Ltd. officially ceased production on December 31, 2018, and more than 2,600 employees were transferred or resigned.

  According to Reuters reported at the end of last year, the influence of Samsung smartphones in the Chinese market is declining, leaving only 1% of market share.

  It is understood that Samsung's current focus is on the Southeast Asian market. Since 2008, the total investment in Vietnam has increased from 630 million US dollars to 17.3 billion US dollars in 10 years. There are 8 factories in Vietnam, and the total export value of Samsung Vietnam Company in the past two years. It accounts for nearly 25% of Vietnam's total exports.

  In addition, in India, the Noida plant with an annual output of 120 million mobile phones has become Samsung's largest factory in the world. Some analysts pointed out that in the context of rising labor costs and falling market share, Samsung's need to continue to retain Chinese factories is not great.





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