Samsung Electronics will move parts of the company's TV production to Vietnam and some other countries after shutting down its only TV factory in China in late November.
Samsung’s sole TV factory in Tianjin, China is scheduled to be closed at the end of November, as part of a greater trend of businesses shifting supply chains away from China, Nikkei Asian Review quoted the South Korean electronics company as saying.
Following the shutdown, Samsung will shift its TV production to Vietnam, Mexico, Hungry, Egypt, and some other locations.
The company has been losing market share in China due to rising competition from local brands as well as boycotts triggered by Seoul’s decision in 2016 to deploy a U.S.-developed missile shield despite Beijing’s objections, Nikkei Asian Review stated.
In addition, labor cost has also been rising rapidly in China.
Samsung’s TV factory in Tianjin, which opened in 1993, currently has approximately 300 employees following multiple staff cuts.
In late 2019, Samsung shuttered its smartphone factories in Tianjin and the southern Chinese city of Huizhou.
The firmed announced in June that it would cease production at a computer factory in Suzhou.
Samsung still operates a household appliance plant in Suzhou and two chip factories in Xi'an.