Samsung Elec to halt production at its last computer factory in China – Financial Post

SEOUL– Samsung Electronic devices Co will stop operations of its last computer system factory in China, the South Korean tech giant said on Saturday, the current producer to shift production from the world’s second-biggest economy.

Business are rethinking their production and supply chains amidst rising Chinese labor costs, a U.S.-China trade war and the blow from the COVID-19 pandemic.

Around half the 1,700 employees on contract at Samsung Electronic devices Suzhou Computer will be affected, leaving out those included in research and advancement, the South China Early morning Post reported on Friday, citing a notification to Samsung personnel.

The factory shipped $4.3 billion worth of goods out of China in 2012, a figure that had sunk to $1 billion by 2018, the Hong Kong paper stated.

A Samsung spokesperson declined to discuss the factory’s income and deliveries, or information regarding staff members.

” China stays a crucial market for Samsung and we will continue to supply remarkable items and services for Chinese consumers,” the business stated in a declaration.

Samsung shut its last mobile phone factory in China last year. Its remaining facilities include two semiconductor producing sites in Suzhou and Xi’an. (Reporting by Joyce Lee; Editing by William Mallard)

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