Samsung Plans to Shift Its Focus in China to High-End Emerging Sectors
The Samsung Electronics Co. Ltd is now shifting its attention to high-end manufacturing and emerging sectors such as batteries and capacitors in China as the South Korean technology giant is soon planning to close its smartphone manufacturing plant in Huizhou, Guangdong province, its last smartphone factory in China.
According to Industry experts, the tech heavyweight has faced intense competition from other local smartphone makers like Huawei, Oppo, and Vivo, making them adjust their strategy in China. They are aspiring to get hold of opportunities arising from electric vehicle batteries and automotive devices.
When requested to comment on the Huizhou factory closure, Samsung declines to say but the official WeChat account of Huizhou Samsung Electronics last week posted recruitment information for companies in Guangdong province like the carmaker BYD Co Ltd and battery supplier Desay Corp.
Samsung closed its facility in Tianjin last December as part of their ongoing efforts to enhance efficiency in production facilities. They also closed a plant in Shenzhen last April. However, Samsung said that in December, they plan to invest up to $2.4 billion to build new battery and capacitor plants in Tianjin.
Reports from the media in June mentioned that Samsung had already started offering voluntary redundancy to the employers in Huizhou. They responded at that time and said that they were adjusting the production volume if their smartphone factory in Huizhou.
Besides form the plants in China, Samsung is going into manufacturing electronic devices in Vietnam and India. They have increased their spending in Vietnam, developing eight manufacturing plants with their total investment reaching $17.3 billion by last April. As much as they are the world’s biggest smartphone maker, Samsung’s sales are close to being negligible in China. A market consultancy Strategy Analytics says that in the first quarter of this year, the company sales accounted for just one percent of the Chinese market.
Reference
http://www.chinadaily.com.cn/a/201907/23/WS5d366188a310d8305640071c.html
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