Samsung ends last Chinese computer unit as it rethinks production

Samsung Electronics
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By Rahul Vaimal, Associate Editor
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South Korean tech giant Samsung is set to stop operations of its last computer factory in China to become the latest manufacturer among several who have chosen to shift their production from the world’s second-biggest economy.

The global electronics manufacturer along with others have been rethinking their production and supply chains citing three major hurdles; a U.S.-China trade war, the impact of COVID-19 pandemic and rising Chinese labor costs.

The move is expected to affect close to half of 1,700 on contract workers excluding those involved in research and development at the Samsung Electronics Suzhou Computer factory which shipped $4.3 billion worth of goods out of China in 2012, a figure that had reduced to $1 billion by 2018.

A Samsung spokeswoman declined to comment on the factory’s revenue and shipments, or details regarding employees.

“China remains an important market for Samsung and we will continue to provide superior products and services for Chinese consumers,” the company said in a statement.

Samsung had shut its last smartphone factory in China last year. It continues to operate two semiconductor manufacturing sites in Suzhou and Xi’an.

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