Chuan Samsung Huizhou Factory will close down and find another way out for its employees

 Chuan Samsung Huizhou Factory will close down and find another way out for its employees

According to the announcement of Huizhou Samsung Electronicss recruitment announcement issued by the official Wechat Public No. 1, from July 10, Bern Optics, BYD, Guanghong Technologies, TCL Tongli and Desai Battery will hold recruitment activities. HR will interview factory employees directly or indirectly. This kind of arrangement is to lay off employees on a large scale. Augury.

Huizhou Samsung Factory, located in Chenjiang Town, Huicheng District, Huizhou City, was established in 1992 and put into operation in 1993. It is the main production base of Samsung in China. Since the closure of Samsungs factory in Tianjin at the end of 2018, Huizhou Samsung has become Samsungs last mobile phone factory in China.

Samsung has said it is reorganizing and matching the global industry by shifting its intensive factories to countries with lower labor costs to cope with rising labor costs in China. At present, it has gradually moved the production of smartphones from China to Vietnam, India and other countries. At the same time, they also handed over more low-end mobile phones to Chinese ODM companies, such as Skyworth Huizhou Branch, which is helping Samsung to produce Non-Flagship products.

In fact, this is not the first time that Samsung has been exposed to the news of factory closures and layoffs. The reason is that Samsung is losing ground in Chinas smartphone market. According to public data, Samsung mobile phones had a 20% market share in China in 2013. In just five years, that figure has dropped to less than 1%. According to IDC, a market research organization, Samsung mobile phones sold 3.34 million units in China in 2018, with a market share of 0.8%.

Analysts point out that storage components are Samsungs main profitable business, but the semiconductor industry as a whole is undergoing a period of inventory adjustment, which keeps chip demand at a low level and leads to oversupply and lower prices. If the oversupply situation does not improve, Samsungs profit recovery may have to wait for more than one fiscal quarter.

It is worth mentioning that Samsung may also be hit by Japans recent announcement of restrictions on the export of high-tech raw materials for chips and smartphones to South Korea. IHSMarkit Semiconductor Research Executive Director Ryan Yelinek said: Because of the large amount of chemicals required in semiconductor manufacturing, it is unlikely that major chip suppliers will find enough supply from outside Japan. The superposition of many objective factors has made Samsungs electronic business worse.

Source: Responsible Editor of Finance and Economics Network: Wang Xiaowu_NF