The truth about Samsung moving production lines from Vietnam to Korea

The news that Samsung Electronics has moved some production lines from its factory in Vietnam to Korea has led some to believe that Samsung is moving its production location out of Vietnam. However, the information about changing the production location is not accurate.

Responding to the press, Samsung Electronics confirmed that it was not moving the company’s production location from abroad to Korea, nor was it an activity to increase smartphone production.

“In order to ensure stable production of foldable smartphones, a number of component production lines according to the process of Vietnamese partners have been moved to Gumi at the end of August and September 2021,” Samsung said. respond to the press.

In August and September of last year, Samsung moved two production lines of smartphone components of its business partner in Thai Nguyen province to a factory in Gumi, North Gyeongsang Province, Korea.

This move, according to Business Korea, is because a number of overseas production plants – including Vietnam – have been interrupted due to Covid-19.

Currently, factories in Bac Ninh and Thai Nguyen account for about 60% of the total output of about 300 million Samsung smartphones per year.

The Gumi factory, Samsung’s only manufacturing facility in Korea, acts as a control tower that applies the company’s new technologies before expanding to factories overseas.

Although moving the production line to the Gumi factory increases costs for the company, analysts say Samsung must act to manage the supply chain and ensure production capacity.