Samsung to halt operations at its China-based TV factory

Samsung to halt operations at its China-based TV factory

South Korean tech company Samsung is set to close its sole TV factory based in China as part of its strategy to boost its supply chain management.

Samsung Electronics Co. has again decided to shut down one of its China-based factories. In a report published by the Yonhap News, the South Korean tech giant on Monday, September 7, announced that it will cease operations its only TV factory in Tianjin, China by the end of November.

The decision to close the factory is part of its “ongoing efforts to enhance the efficiency” of its production, according to Samsung’s spokesman. It is also said that tight competition between different tech brands has also contributed to the closure.

In China, for instance, Samsung has reportedly been losing its market share against local competition, per Nikkei Asian Review. The report claims that the boycott was triggered by South Korea’s metropolitan to deploy missile developed by the U.S. despite Beijing’s objections.

Aside from that, labor costs in China have been rising as well.

Samsung to pursue global production

On a good note, reports claim that most of the tech giant’s production will shift to several countries worldwide, including Hungary, Vietnam, and Egypt—which the Samsung said would be beneficial for the company.

Samsung has been aiming to boost its production efficiency worldwide. In August, the company has first announced the closure of its last PC factory based in Suzhou, China citing the same reason: efficient supply management.

Samsung to halt operations at its China-based TV factory

Although there were many speculations as to why the tech company decided to leave China, particularly that the decision took place while most big Japanese brands, as well as the U.S., had left China.

Yet despite Samsung’s exit, the company assured that trade between China and Samsung will not be affected and will continue to “provide superior products and services” to the country moving forward.

Not the first time

Samsung’s decision to leave China is not the first time as well as it has been recently closing its factories one after another.

In 2018, its smartphone factory located in Tianjin stopped its operations too, while its factory based in Huizhou has closed last year. All these closures have then left Samsung with factories for home appliances and chip production located in Xian and Suzhou, China.

Samsung’s TV factory has 300 workers. Although Samsung declined to comment about the said employees’ overall status, some will be reassigned to other facilities, per Nikkei Review.

Samsung also plans to help its workers find new jobs as part of the closure.

Images courtesy of DennisM2/Flickr, Andrea Piacquadio/Pexels

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