Samsung plans to reorganize the production capacity of its seven production bases at home and abroad next year. It is said that it is planning to transfer some of its smartphone production capacity from Vietnam to India and Indonesia.
According to TheElec report, Samsung has two smartphone factories in Vietnam, in Bac Ninh Province and Taiyuan Province. As of last year, the annual production capacity of the two factories was 182 million units, accounting for about 60% of Samsung’s total production of smartphones. Samsung’s goal is to reduce this ratio to about 50%, or about 163 million units per year.
According to Samsung’s plan, the production capacity of 19 million units of the Vietnam factory will be transferred to India and Indonesia in turn. It is planned to expand the annual output of the Indian plant from the current 60 million units to 93 million units by 2022, and the Indonesian plant will increase from 10 million units to 18 million units per year.
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Once the reorganization is completed, the Indian factory will increase the proportion of Samsung’s total smartphone production from 20% to 29%, and Indonesia will increase from the current 4% to 6%. According to sources, Samsung’s reorganization is due to rising labor costs in Vietnam. At the same time, due to the epidemic earlier this year.
The company closed its factory in Vietnam, which once restricted its production capacity. Samsung hopes to reduce its dependence on its factory in Vietnam. A Samsung spokesperson declined to comment on TheElec on this matter.