While the epidemic of coronavirus has just passed the milestone of 100,000 certified cases, South Korea is the first country most affected in number of patients after the Chinese point of departure with more than 6,500 cases declared.
The group Samsung had to stop Gumi production site which is not far from the city of Daegu, the country’s main epidemic center. The Financial times reports the Korean giant has decided to transfer part of its production from Galaxy Z Flip, its foldable screen smartphone in flap format sold at € 1,500, to Vietnam to guarantee stable production.
A production capacity of 200,000 units / month will therefore be relocated and Samsung ensures that it will be reintegrated into the Gumi site as soon as conditions allow. The group currently limits the travel of its employees and favors teleworking when possible.
The plant has some 10,000 employees, some of whom have been placed in temporary confinement in recent weeks, disrupting operations. These difficulties are added to those of the supply of electronic components from China, also disrupted by the coronavirus epidemic and reducing the reserves of subcontractors
The situation is still manageable but it could get complicated if it continues. Samsung has started producing certain components for its smartphones in Vietnam rather than China, with the flow of goods being disrupted or restricted between the two countries.
Vietnam is therefore in the process of becoming an unavoidable production point for Samsung, which manufactures more than half of its smartphones there, explains the Financial times.
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