Samsung is moving out of China

Samsung, the South Korean electronics giant, will cease production at its last computer factory in China as it moves production out of the country. The move follows the closure of its last smartphone factory in China last year, leaving only two chip manufacturing plants in the country as the company seeks to realign itself after the COVID-19 pandemic. "China remains an important market for Samsung and we will continue to provide high quality products and services to Chinese consumers," the company said in a statement to Reuters. About half of the 1,700 workers in the PC manufacturing plant will be affected by the decision, while those involved in research and development are safe. According to Samsung, the company intends to focus on R&D to increase the efficiency of its global manufacturing facilities. The factory was established by Samsung in Suzhou in 2002, one year after China joined the World Trade Organization. At its peak in 2012, the PC factory had annual sales of over $ 4 billion. In 2018, sales had shrunk to just $ 1 billion. As labor costs rise and global supply chains are disrupted by the coronavirus outbreak, China is losing its advantages in the assembly and manufacturing sectors. Samsung plans to ramp up its cell phone manufacturing in India as the Indian government aims to create $ 154 billion worth of smartphone productions and 300,000 direct jobs within five years.