Well-known Chinese news site Sina recently reported that Samsung announced on October 2 that it stopped its manufacturing work in the factory located in Huizhou, Guangdong Province. It is the last handset factory Samsung has in China. Samsung started to lay off its workers in the Huizhou factory in June and all manufacturing lines were closed by the end of September. The company used to have three factories in China. Samsung closed its Shenzhen (Guangdong Province) factory in April, 2014. The Tianjin factory was closed in December, 2018. This newly closed Huizhou factory was established in 1992 with an initial investment of US$190.7 million. Its monthly smartphone manufacturing capacity was 400,000. Samsung has been shifting its investments from China to Vietnam. In the past ten years, Samsung’s total investment in Vietnam grew from US$630 million to US$17.3 billion, with eight factories. Also, Samsung has its largest handset factory in India, producing 120 million handsets per year. Analysts pointed out that, given the growing cost of labor in China, Samsung has little reason to manufacture there.
Source: Sina, October 2, 2019