Massive Loss of 71.4 Billion! Amidst the Collapse of Its Operations in China, Is It Exiting China?
At the just-concluded China International Import Expo, Samsung, participating for the sixth time, once again captured numerous spectators' attention with cutting-edge technological products such as foldable smartphones, MICRO LED, and 3nm chips.
While aggressively promoting its products and business layout, Samsung's overall business performance in the past year has been far from optimistic. According to the recent financial report released by Samsung Electronics, the operating profit in the third quarter decreased by 77.57% year-on-year, a decline far exceeding previous records. In the first half of this year, impacted by the semiconductor industry's downturn, Samsung Electronics' net profit in the first two quarters plummeted by over 84% year-on-year, marking the largest drop in nearly 14 years. Simultaneously, following the announcement of Samsung Mobile's withdrawal from the Chinese market, rumors are circulating that Samsung's display factory in China will relocate.
At the expo, when asked about the location of Samsung's TV display production, a Samsung representative disclosed, "The display screen business is no longer produced in China; production capacity has shifted to Vietnam." However, this statement has not received official confirmation. Allegedly, Samsung Display has internally notified its factories in China that existing OEM models will cease production entirely in the fourth quarter of 2023, with production moving to its Vietnamese factory. Several Chinese enterprises in its supply chain have also planned to relocate mold production following Samsung's move. Apart from the mobile business, is Samsung withdrawing from another sector in China?