Samsung has officially shut down its phone production in China and made the decision to move their manufacturing base to Vietnam and India. The company had recently stopped production in Huizhou, China.
Due to competition from companies such as Huawei, Oppo, Xiaomi and Vivo, Samsung has had a tough time in and has lost market share in China. Samsung is not among the top 10 vendors in China anymore. Samsung only has a share of 1% in the Chinese market.
“The production equipment will be re-allocated to other global manufacturing sites, depending on our global production strategy based on market needs,” Samsung said in a statement. This move was made by Samsung due to China’s rising labour costs.
Around 200,000 employees are working for Samsung in Vietnam and they also mass-produce half of their 292 million handsets. Samsung also announced in July, the opening of the world’s largest phone factory in Nida, Uttar Pradesh. This plant has the capacity to manufacture around 120 million phones in a year.
Samsung already had an existing factory in Noida and has a plant for manufacturing mobile phones in Tamil Nadu as well. The company has been manufacturing in India, for the past two years.