What They Say
ETNews said that Samsung is looking to further diversify its smartphone production geographically and may reduce the proportion of its smartphone production in Vietnam from 50% this year to 40% in 2023. The factories in Vietnam’s Thai Nguyen and Bac Ninh provinces will produce 46% of all mobile devices, including smartphones, tablet PCs, and feature phones. 32% will be produced in Thai Nguyen and 14% in Bac Ninh the report said. The move is said to be a general desire to reduce concentration in case of unexpected events, but also because of rising labour costs.
Samsung’s production base in India will account for 21% or 68 million units of Samsung’s total smartphone production, while Brazil will account for 23 million units or 7%. Indonesia and South Korea will account for 3% each and Turkey and Egypt will account for a combined 1%, according to The Elec.
What We Think
These are challenging times and a diversified supply chain looks as though it makes sense, although at some point there would be a loss of some of the benefits of scale. We have some interesting data on smartphones that will be published later today (DSCC Webinar Updates on Smartphones) (BR)
