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Samsung temporarily suspends the operation of its TV factory in Russia


Last updated: March 21st, 2022 at 15:05 UTC+02:00

In light of the ongoing Russia-Ukraine war, Samsung has temporarily suspended the operation of its TV factory in Russia. Notably, according to a report by The Elec, the Samsung Electronics TV factory in Kaluga, near Moscow, is the one that is being temporarily shut down by the company.

This move was made because the company is facing hurdles in the supply of important parts of TV, such as panels. Not only Samsung, but LG is also evaluating options to suspend operations of its home appliance and TV factories in Russia.

The major concern for Samsung Electronics is that if the troubled macroeconomic situation continues to exist for a prolonged time, the management strategies of the company will be severely disrupted.

Samsung has already stopped shipping and selling TVs in Russia

Samsung is closely monitoring the situation between Russia and Ukraine. In fact, the company has already stopped shipping and selling TVs in Russia on March 7. Moreover, it stopped selling phones, chips, and other products on March 5 as well.

The economic sanctions on Russia by the international community are the driving force behind such decisions, including the suspension of the TV factory in Kaluga.

Research firm Omida has predicted that the tension between Russia and Ukraine may decrease Samsung TV shipments by at least 10% to a maximum of 50% if the tension continues. Samsung Electronics is planning to make up for the decrease in shipments in these markets by targeting other markets.

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