Samsung Electronics has announced that the company will be shutting down its sole TV production facility in China in November this year. The development is yet another step by the South Korean giant for diversifying its production and shifting the majority of the operations away from China.
The TV manufacturing unit in Tianjin is the only TV facility based in China for Samsung. In a statement announcing this decision, the company said that it is a part of the “ongoing efforts to enhance efficiency” in its production facilities.
While the company has not revealed details about the number of people working at this facility, some reports indicate that it employs about 300 workers. Samsung has added that some of the workers and equipment are expected to be retained.
Now, the South Korean giant is left with a home appliance factory in Suzhou and chip production facilities in Suzhou and Xian. The company recently announced selling off the LCD display manufacturing unit to TCL.
The tech industry, especially those companies dealing with consumer electronics, has been impacted by the disruption in production and supply chain because of the COVID-19 pandemic and are now opting to diversify their operations. Another factor of moving operations away from China is the global backlash received in the aftermath of COVID-19 and anti-China sentiments among the users.