Join us on Telegram | Early Samsung Black Friday deals, check them out right now!

SamMobile has affiliate and sponsored partnerships. If you buy something through one of these links, we may earn a commission. Learn more.

Samsung will rely less on Vietnam for its smartphone needs

Business
By 

Last updated: November 17th, 2021 at 12:49 UTC+01:00

Over the past few weeks, we’ve heard multiple reports of Samsung facilities in Vietnam operating at reduced capacities due to COVID-related restrictions. Previously, supply issues caused Samsung a 5% loss in one prime market. Vietnam is where Samsung phones are made, most of them anyway.

Labor costs in Vietnam are rising, too. As a result, Samsung is planning to reduce the output of its Vietnam facilities and offload it to locations such as India and Indonesia.

Samsung plans to expand its manufacturing facilities elsewhere

TheElec.kr reports that production of up to 192 million units of smartphones will be moved to the locations mentioned above. The transition isn’t instant, though, and will be spread out over a span of two years.

19 million units will be spread out across India and Indonesia starting in Q1, 2022, followed by additional volume in the coming months. The Indian plants, in particular, will witness a meteoric rise in the number of orders. It is projected to manufacture 93 million smartphones in 2022, 33 million more than its 2021 forecast.

Samsung has earmarked a total of $140 million for the endeavour, of which $90 million will go to India and $50 million to Indonesia. In 2022, 50% of the manufacturing will happen in Vietnam, 29% in India, 6% in Indonesia and the remaining amount globally. Currently, those figures stand at 60%, 20% and 4% for Vietnam, India and Indonesia, respectively.

The decision to diversify the supply chain to additional locations isn’t surprising, given that disruption at one location can severely impact prospects. Until now, Samsung had heavily relied on Vietnam for its manufacturing need and the recent events may have prompted it to rethink its strategy.

Join SamMobile’s Telegram group and subscribe to our YouTube channel to get instant news updates and in-depth reviews of Samsung devices. You can also subscribe to get updates from us on Google News and follow us on Twitter.

Source Business Samsung ElectronicsVietnam
Load 0 comments

You might also like

Samsung Gaming Hub is the best thing that ever happened to cloud gaming

If someone were to tell me a year ago that Samsung is the answer to cloud gaming, I would’ve probably laughed or looked bewildered thinking of that notion. I also would’ve been wrong to doubt that hypothesis. Because here we are in 2022, with Samsung arguably becoming one of the most valuable partners for cloud […]

  • By Mihai Matei
  • 1 day ago

Q3 smartphone shipments to Europe declined but Samsung kept the lead

Demand for smartphones in Europe appears to be declining, but Samsung maintained the lead in Q3 2022 despite considerable losses. The European smartphone market shrunk by 16% year-on-year, with market watchers saying that shipments were just a little over 40 million units due to economic challenges. Xiaomi capitalized on the Russian market to rise to […]

  • By Mihai Matei
  • 1 day ago

Samsung may not pursue slidable phones, but its rivals might have to

Even though Samsung Display has been experimenting with various form factors and use cases for its state-of-the-art foldable display technology, at least one analyst believes that the company has no interest in developing commercial slidable phones. Furthermore, because Samsung has a tight grip on the foldable phone market as it is, Chinese smartphone manufacturers might […]

  • By Mihai Matei
  • 1 week ago

Samsung may have expanded its Galaxy S23 Ultra camera supply chain

All rumors indicate that the upcoming Galaxy S23 Ultra will feature four rear-facing cameras, including a 200MP primary sensor, a 12MP ultra-wide shooter, and two 10MP telephoto cameras — one with 3x optical zoom and the other boasting 10x capabilities thanks to folded-lens technology. According to a new report, China’s Sunny Optical will supply two […]

  • By Mihai Matei
  • 1 week ago

Samsung just sold 400,000 rugged Galaxy devices in one go

Samsung has found a new business customer for its rugged Galaxy mobile devices. The company announced today that Samsung France got selected as a partner of the consortium co-sponsored by Airbus and Capgemini. As a result of this partnership, Samsung says it will work closely with Airbus to equip roughly 400,000 employees with Galaxy rugged […]

  • By Mihai Matei
  • 2 weeks ago

Where are Samsung phones made? It’s not where you think

Samsung is the biggest smartphone vendor on the planet. Data from multiple industry trackers showed that the company shipped nearly 300 million units just last year. As you can probably imagine, a vast manufacturing network is required to pump out over a quarter of a billion devices every year. The company has factories in several […]

  • By Adnan Farooqui
  • 2 weeks ago