On February 14, according to South Korean media outlet ETnews, Samsung Electronics has transferred some overseas smartphone production lines to the Gumi factory in Gumi City, North Gyeongsang Province, South Korea. This is a special measure taken by its major plants in Vietnam and other countries after experiencing production setbacks affected by the COVID-19 pandemic.
At the end of 2021, Samsung Electronics has transferred some of its smartphone production lines in Vietnam to the Gumi factory. This is the first time that the Gumi plant has increased production capacity since relocating its production lines overseas.
Samsung Electronics Gumi Factory Image Source: ETnews
At present, Samsung Electronics' annual production of smartphones is about 300 million units. Among them, two factories in Vietnam's Bac Ninh and Taiyuan provinces are the largest production bases, accounting for about 60% of Samsung's total smartphone production. The Noida plant in India also has a capacity of 100 million units. Plants in Brazil and Indonesia adjust their production capacity to local demand.
As Samsung Electronics' only mobile phone production base in South Korea, the Gumi factory specializes in the production of flagship products such as folding screen smartphones and Galaxy S. But its share in Samsung Electronics' total smartphone production has gradually declined.
However, since last year, Samsung Electronics' global manufacturing bases in Vietnam and other countries have been closed due to the new crown epidemic, and even serious production interruptions have occurred. As a special measure of supply chain management, the company seeks to "return" production capacity, that is, to relocate overseas production lines back to South Korea.
Samsung Galaxy S22 series
At the same time, due to the need to improve the supervision and production level of high-end smartphones, Samsung Electronics even moved the production line to the Gumi factory at the expense of manufacturing. It is reported that most of the flagship smartphone Galaxy S22 series, which will be officially released on the 25th, will be produced at the Gumi factory.
In addition to "backflowing" to the Gumi factory, Samsung Electronics also controls the output of each overseas factory. By distributing smartphone production concentrated in Vietnam around the world, it can minimize losses even if factories close in specific regions. It is understood that Samsung Electronics is recommending its diversification of global factory capacity to some major suppliers.