Samsung Electronics to relocate some smartphone production lines from Vietnam to South Korea

Samsung Electronics has transferred some overseas smartphone production lines to the Gumi factory in Gumi, Gyeongsangbuk-do, South Korea. This is a special measure taken by its main factories in Vietnam and other countries after experiencing production setbacks due to the impact of the new crown epidemic.

According to reports, by the end of 2021, Samsung Electronics has transferred some of its smartphone production lines in Vietnam to the Gumi plant. This is the first time that the Gumi plant has increased production capacity since its production line was relocated overseas.

Currently, Samsung Electronics' annual output of smartphones is about 300 million units. Among them, the two factories in Bac Ninh and Tai Ninh provinces in Vietnam are the largest production bases, accounting for about 60% of Samsung's total smartphone production. The Noida plant in India also has a production capacity of 100 million units. Factories in Brazil and Indonesia adjust capacity according to local demand.

As Samsung Electronics' only mobile phone production base in South Korea, the Gumi plant specializes in the production of folding-screen smartphones and flagship products such as the Galaxy S. But its share of Samsung Electronics' total smartphone production has gradually declined.

But starting last year, Samsung Electronics’ global manufacturing bases in Vietnam and other locations have been shut down due to the new crown epidemic, and even severe production disruptions have occurred. As a special measure of supply chain management, the company seeks to "return" production capacity, that is, to move overseas production lines back to South Korea.

At the same time, Samsung Electronics even relocated the production line to the Gumi factory at the expense of increasing manufacturing costs, realizing the need to improve the level of supervision and production of high-end smartphones. It is reported that most of the flagship smartphone Galaxy S22 series, which will be officially released on the 25th, will be produced at the Gumi factory.

In addition to "reflowing" to the Gumi plant, Samsung Electronics controls the output of each overseas plant . And by distributing smartphone production, which is concentrated in Vietnam, around the world, it can minimize losses even if factories in specific regions close. It is understood that Samsung Electronics is recommending the diversification of its global factory production capacity to some major suppliers.

Post a Comment