Daily Management Review

Samsung To Close Production At Its Only China TV Factory By November


Samsung To Close Production At Its Only China TV Factory By November
In its latest plans of shifting out it production facilities from China – the second largest economy of the world, South Korean electronics giant Samsung has now decided to stop production of televisions at the only remaining TV production unit in the country by the end of November, said a spokesman said on Monday.
The spokesman said that the Tianjin based TV factory of the company is the only TV manufacturing base of the company in China.
Samsung had said in a statement previously that the decision of the company is part of "ongoing efforts to enhance efficiency" at all of its production facilities.
There are about 300 employees at the aforesaid TC factory, according to a Yonhap news agency report published on Monday. There was no comment available from Samsung bout the number of employees at the factory. The company however said that it expects that some of the employees and equipment at the TV manufacturing facility will be retained by it.
After the closure of this TV factory, the company will have just one factory in Suzhou, China where it manufactures home appliance and chip manufacturing units in Suzhou and Xian.
In a separate announcement last week, the display unit of Samsung had confirmed that a majority stake in its Suzhou liquid crystal display (LCD) production unit of the companay would be sold off to TCL's Star Optoelectronics Technology unit.
In March, Samsung Display had said that the company planned to close down all production units of the company of LCD panels in South Korea and China by the end of the current year.
Halting of its operations in its last computer factory in China was announced by Samsung in August.
Analysts see this move by Samsung as a part of its larger plans of reducing dependence on China for its supply chain and production.
Earlier in June this year, there were reports in the state media in Vietnam that Samsung was planning to shift a large part of its display production from China to the southern Vietnam factory of the company by this year.
With investments to the tune of $17 billion, Samsung is the single largest foreign investor in Vietnam.
"Samsung sees Vietnam as an important gateway to other Southeast Asian countries and a link in its global supply chain," state-run newspaper Tuoi Tre had reported. "The move will make Vietnam become the world's leading supplier of Samsung screens," it had added.
No comments from Samsung on the conjecture were provided at that time.
Earlier in January this year, there were reports emerging out of India that Samsung Display could set up a factory in India with a $500 million investment as a part of expansion of its smartphone production in the country, the reports were based on a regulatory filing.
No further details about the plan except for the regulatory filing were however provided by the company at that time.