Samsung Electronics Co will halt operations in its last remaining computer factory in China. The announcement came on August 1 when the South Korean tech giant confirmed the continued shift of production from China, which is the second-biggest economy in the world.
In the wake of the coronavirus global supply chains are taking a hit and companies are rethinking their manufacturing plans. Chinese labor and production costs have also been rising as a result of the pandemic.
Samsung has notified employees at the Samsung Electronics Suzhou Computer factory that approximately half of the workers on the contract will be affected. The employees that are involved in research and development will remain, the China Post reported.
In 2012, at peak production the Samsung Electronics Suzhou Computer plant had 6,500 employees. Today there are 1,700 workers in the facility. Approximately 850 research and development employees will remain.
Although the company doesn’t comment on factory revenue or exports, the Hong Kong newspaper reported that in 2012 the factory shipped 4.3 billion worth of products and in 2018 that had decreased to $1 billion.
