The largest factory moved to India
Tianjin Samsung Communication Technology Co., Ltd. is a joint venture between Samsung Electronics Co., Ltd. and Tianjin Electronic Instrument Corporation. It was established in August 2001 and is controlled by Samsung Electronics Co., Ltd. 90%.
Phoenix Technology’s field visit reports that the factory’s employees did not know the news that the factory was going to be closed. From the surface, it’s not like the factory that the Korean media reported that it will stop operating.
However, there are indications that China is not the most important production base of Samsung.
In April of this year, employees of Shenzhen Samsung Electronics Co., Ltd. received severance notices and the factory will be closed. The plant is said to be the first communications equipment manufacturer established by Samsung Electronics overseas. According to the company's check, in July, the main body type of Shenzhen Samsung Electronics Co., Ltd. has been changed from a Sino-foreign joint venture to a limited liability company wholly owned by a foreign legal person.
After the Shenzhen factory was cancelled, Samsung had two factories in Tianjin and Huizhou, Guangdong. However, Samsung has begun to shift its production focus to China.
In July, Samsung announced that it has built the world's largest mobile phone factory in Noida, India. It is reported that the new factory covers an area of 35 acres (about 212.5 acres). After being put into use, Samsung smartphone production is expected to increase from 68 million to 120 million.
Liu Qicheng, an observer in the communications industry, told the International Finance News that Samsung’s sales in the Chinese market have fallen sharply, which will inevitably shut down the factory and move to places where labor costs and production costs are lower.
“The appeal of the Indian market lies in the demographic dividend brought by its huge population base, the rapid growth of mobile phone penetration, and the huge space for the development of the mobile phone market.” Feng Yanjiao, the consulting director of CIC Knowledge Consulting, was interviewed by the International Finance News reporter. In this way, Samsung and domestic brands have obvious design and manufacturing advantages compared to Indian mobile phone brands, and can seize market share in local competition.
The data proves that Samsung's investment in India has been effective. According to the latest report from market research firm Counterpoint, Samsung won a 29% market share in the Indian smartphone market in the second quarter of this year, slightly surpassing Xiaomi's 28% market share and returning to the top of the Indian smartphone market.