Samsung, which has been in trouble in the Chinese market, has been exposed to the thought of shutting down mobile phone factories in Tianjin.
Samsung Electronics is considering suspending the operation of the mobile phone factory of Tianjin Samsung Communications Technology Co. Ltd., one of Samsung Electronics's mobile phone production bases in China, according to a Monday report by the South Korea electronic times, reported by Reuters Chinese news agency, August 13. Samsung Electronic's Tianjin communications technology company plans to focus on activities that will enhance competitiveness and effectiveness as the entire smartphone market faces difficulties due to the slowdown in growth.
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Samsung China has not given a further response.
Samsung mobile phones in China's production plants are mainly two: one is located in Tianjin, Tianjin Samsung Communication Technology Co., Ltd., the other is Huizhou Samsung Electronics Co.
According to the South Korean economic daily, Samsung's factories in Tianjin produce 36 million handsets a year, and Huizhou plants produce 72 million annually.
At present, the South Korean media reports, does not involve Samsung Huizhou factory's next fate. Enterprises to check the data show that Tianjin Samsung Communications Technology Co., Ltd. was established in 2001, Samsung Electronics Co., Ltd holds 90% shareholding, Tianjin Central Electronic Information Group Co., Ltd. shares 10%; the company's business scope includes the development, production, sale of mobile phone terminals, data communications multimedia products, access to network communication system equipment
, Broadband integrated Services Digital network equipment, new electronic components, telephones, portable microcomputers, cameras and so on.
One of Samsung's concerns about shutting down the factory in Tianjin is the drop in sales of Samsung handsets in the Chinese market in recent years.
Samsung, the world's largest smartphone maker, has faced a strong challenge to its local brands in recent years in the Chinese market.
In the second quarter of 2018, China's smartphone market, published by Strategy Analytics, a market-research agency, reported that Samsung sold only 800,000 smartphones in China in 12th place. Samsung's share of the Chinese handset market rebounded to 1.3% in the first quarter of this year, but fell back to 0.8% in the second quarter, flat in the fourth quarter of 2017.
5 years ago, Samsung's share of the smartphone market in China was as high as 20%, with a large market share now dominated by Huawei, OPPO, Vivo, millet and other Chinese handset brands.
If the Chinese market is unable to digest plant capacity and increase manufacturing costs, it seems easy to understand that Samsung is seeking to adjust to Chinese factories. Samsung closed its Samsung electronic communications company in Shenzhen in April this year. The factory was originally responsible for the production of CDMA handsets, which later transformed production network equipment.
But the factory is small and employs only 300 people. In recent years, Samsung has been moving low-end manufacturing to countries and regions such as Southeast Asia and India. It is reported that Samsung's two factories in Vietnam total production of 240 million mobile phones each year.
Recently, Samsung has just announced the creation of the world's largest smartphone factory in the suburbs of New Delhi, India, which is expected to become an export hub.
Another backdrop to the restructuring of Samsung's business in China is the upgrading of China's industrial structure.
A Samsung insider said that some of the low-end manufacturing business has been adjusted, does not mean that Samsung does not attach importance to the Chinese market, some high-end manufacturing industry will continue to invest in China to comply with China's industrial upgrading trend. From Samsung's investment map, Xi ' an is a Samsung semiconductor investment center. In March this year, Samsung (China) semiconductor memory chip two phase project in XI ' an officially started.
This is another big investment in the Chinese market following the first issue of the 10 billion dollar investment in 2012.
In addition to semiconductor chips, Samsung's LCD panels, car batteries and other High-tech business in China also has an important layout. At the beginning of May this year, Samsung vice president Mr Lee with BYD chairman Wang, Huawei President Ren, Millet CEO Lei June and Vivo CEO Shen Wei and other people met.
According to South Korea's central daily report, including Samsung Electronic CEO Kinchinan, storage business leader Quincho Yong, the system LSI business leader Kang Renye and Samsung Show CEO Li Dongxun, including several Samsung Core management, also followed Mr Lee came to Shenzhen.
Industry insiders believe that Samsung's next focus on the Chinese market will shift to a stronger technical advantage of the upstream industrial chain. Samsung exposed to suspend operation in Tianjin factory: smartphone market faces difficulties