SEOUL (Reuters) - Samsung Electronics Co will halt operations of its final pc manufacturing unit in China, the South Korean tech big stated on Saturday, the newest producer to shift manufacturing from the world's second-biggest financial system.
Corporations are rethinking their manufacturing and provide chains amid rising Chinese language labour prices, a U.S.-China commerce warfare and the blow from the COVID-19 pandemic.
Round half the 1,700 staff on contract at Samsung Electronics Suzhou Pc shall be affected, excluding these concerned in analysis and improvement, the South China Morning Publish reported on Friday, citing a discover to Samsung employees.
The manufacturing unit shipped $four.three billion value of products out of China in 2012, a determine that had sunk to $1 billion by 2018, the Hong Kong newspaper stated.
A Samsung spokeswoman declined to touch upon the manufacturing unit's income and shipments, or particulars relating to staff.
"China stays an essential marketplace for Samsung and we'll proceed to offer superior services for Chinese language shoppers," the corporate stated in a press release.
Samsung shut its final smartphone manufacturing unit in China final yr. Its remaining amenities embrace two semiconductor manufacturing websites in Suzhou and Xi'an.
(Reporting by Joyce Lee; Modifying by William Mallard)