Samsung Electronics is currently manufacturing 50 percent of its mobile phones in Vietnam and only 8 percent in Korea.
At present, Samsung Electronics is running six mobile phone manufacturing facilities in the six countries of Vietnam, China, India, Brazil, Indonesia, and Korea. The two plants in Vietnam have a combined annual production capacity of 240 million units. Samsung Electronics is planning to expand the plants at an investment of US$3 billion, and their capacity is expected to reach 270 million units at the end of this year.
The two factories in China have a maximum capacity of 150 million phones. However, Samsung is looking to cut their production by approximately 40 million in view of the high labor costs in China.
In India, its facilities with a capacity of 50 million are located in the Noida Industrial Complex on the outskirts of New Delhi. This region’s significance is on the rise these days as is seen in the fact that Samsung’s first Tizen phone, the Z1, made its world premiere here. Its proximity to Europe adds to the importance, too.
The plants in Brazil and Indonesia are capable of manufacturing up to 12 million and 8 million mobile phones a year each. The two factories in Brazil are currently producing 6.5 million handsets per year and those in Jakarta were put into full-scale operation this month. The annual production capacity of its plant in Gumi, Korea is estimated at around 40 million units.