First Overseas Plant in 8 Years
Samsung Electronics is building a smartphone production plant in Turkey with an annual capacity of 3 million units. It is the company’s first overseas plant in eight years since the opening of a plant in Vietnam in 2013.
The latest factory is located in Tekirda, northwest of Turkey, and is preparing for its full operation. Samsung Electronics has thus far relying on contract manufacturing in Turkey.
The company did not disclose the exact production capacity of the new plant, but local media outlets in Turkey report that it is capable of rolling out three million units per year, with the focus on budget products such as the Galaxy A series.
Samsung Electronics mass-produces about 300 million smartphones a year. In Korea, it only has a factory in Gumi, North Gyeongsang Province, which produces premium products including the Galaxy S series.
Its biggest production base is Vietnam where two factories produce about 150 million units in total every year. Recently the Korean smartphone giant is rapidly expanding its Noida plant in India, which reportedly produces about 100 million units per year.
In addition, Samsung Electronics runs smartphone factories in Brazil and Indonesia that meet local demand.
"The factory to be built in Turkey is setting up equipment with the goal of beginning operations within 2021." said a company official. "The factory in Turkey will produce products for the local market. No decision has been made about export them."
As of last month, Samsung Electronics ranked first with a 43 percent market share in the Turkish smartphone market. However, Chinese companies are in hot pursuit of Samsung Electronics in the Turkish market. Huawei began to enter the Turkish market in earnest. Oppo completed a smartphone production base in Istanbul and is conducting its pilot production. Xiaomi is also preparing to produce smartphones in Istanbul.