Samsung to Shift Some Smartphone Production to Vietnam Due to Coronavirus

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Samsung Electronics mentioned on Friday that it could briefly transfer some smartphone manufacturing to Vietnam from South Korea after one other of its Korean employees examined optimistic for the coronavirus, forcing it to shut a manufacturing facility.

An organization spokeswoman mentioned the group had suspended operations at its manufacturing facility within the southern metropolis of Gumi in South Korea after a employee examined optimistic for the virus.

The plant, which makes Samsung’s premium telephones like S20 and Z Flip foldable telephones, will resume manufacturing on Saturday, she mentioned.

Since late February, a complete of six employees have examined optimistic on the manufacturing facility complicated in Gumi, near the town of Daegu – the epicentre of South Korea’s virus outbreak – resulting in earlier momentary closures on the plant.

The transfer to shift output of “some premium smartphones” to Vietnam “intends to supply products to consumers in more effective, stable and timely manner,” Samsung mentioned in a press release.

“Once the COVID-19 situation stabilises, we plan to move back the output to Gumi,” it mentioned.

Samsung has already shifted a lot of its smartphone manufacturing to Vietnam over the previous decade, the place it makes over 50 % of its telephones and has thus far seen little manufacturing disruption. Its Gumi manufacturing facility makes up for a small portion of its whole output.

Samsung on Friday launched its S20 flagship smartphones globally as scheduled amid considerations that the virus would dent demand for premium telephones at residence and abroad markets.

© Thomson Reuters 2020

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