Samsung pulls a stroke on his production to China - The Point

is China is saying farewell to its status as the workshop of the world ? If the trend has already started in recent years, with the rise of India or even Vietna

Samsung pulls a stroke on his production to China - The Point

is China is saying farewell to its status as the workshop of the world ? If the trend has already started in recent years, with the rise of India or even Vietnam, Samsung seems to want to turn the page. As highlighted in The Echoes, the giant south Korean company's new technologies will close its assembly lines of PC's and laptops at the end of the month of August. A decision motivated by economic reasons, but also political.

It is a revolution that begins in Suzhou, in eastern China. In September 2002, Samsung opened a large factory for its computers. A site that has quickly gathered all of the production machines of the group, including through labour at a reduced price. But, at the end of August, this period will end with the closure of assembly lines. A spokesperson of Samsung Electronics has confirmed the news to the news agency Yonhap. One-half of 1 700 employees will be laid off or moved on to another site. Samsung will retain only the research and development activities on-site. If it is not known where will be moved the production of Samsung, it is the track of Vietnam that is emerging. Samsung has invested heavily over the past decade and it is already out there the company produces its smartphones.

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Economics and policy

the closure of The site follows those of three other plants in recent years in China. Why this desire to relocate to new production ? Several factors weigh on the decision of Samsung. The first is of course the cost of the workforce, which has increased in recent years. Other Asian countries, such as India, Cambodia or Vietnam, are now more interesting. But the second parameter to be taken into consideration is the geopolitical. Trade tensions between China and the United States, and, in particular, tariff barriers, encourage many companies to move their productions out of the country.

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Many countries are trying to attract the giants of the new technologies. As highlighted in TechCrunch, Samsung has also applied to the Production Linked Incentive Scheme (PLI) in India. A program to $ 6.6 billion, launched by the country of Narendra Modi to develop the production of smartphones.

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Updated Date: 04 August 2020, 05:33

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