Samsung to halt PC production in China in latest blow to manufacturing sector
- The South Korean firm will no longer focus on PC assembly and manufacturing at its facility in Chinese city of Suzhou ‘due to fierce market competition’
- Around half of the current 1,700 employees who were on contract as of the end of 2019 are set to be affected as Samsung switches focus to research and development
Samsung’s last remaining overseas computer manufacturing facility in the Chinese city of Suzhou will halt production to instead focus more on research and development.
The South Korean giant has decided that its Samsung Electronics Suzhou Computer plant will no longer focus on assembly and manufacturing “due to fierce market competition”.
“Except for employees at the research and development department, all others’ employment contracts will be affected,” continued a notice to staff first seen by the South China Morning Post, which was confirmed as being authentic by a Suzhou government official working for the industrial estate where the plant is located.
At its peak in 2012, the factory had 6,500 employees, although the latest change is only set to affect around half of the 1,700 employees who were on contract as of the end of 2019.
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Samsung later officially confirmed that the plant would halt production and instead focus more on research and development, with the decision partially due to the “ongoing efforts to enhance efficiency across our global production bases”. The company also confirmed that it would provide opportunities to affected employees to transfer to other Samsung facilities.
A spokesman for the industrial estate said the local labour department would help the affected staff to find new jobs, while adding that it understood and supported Samsung’s decision.