Global tech powerhouse Samsung is redistributing its production capacity across its seven manufacturing sites. The moves are part of plans by the company to ensure that no facility exceeds more than 30% of the overall production numbers. The move by Samsung will see its two manufacturing plants in Vietnam scale down its current production of about 182 million units to 163 million units annually.
Samsung’s move is part of the company’s long-term aim of risk redistribution. The expansion of Samsung’s India production facility will see it producing 108 million smartphones by 2026, although the expansion trajectory could see the Indian plant becoming Samsung’s largest by 2024.
Samsung has manufacturing facilities in India, Indonesia, Vietnam, and Brazil, outside its home market of Korea. The capacities of the production facilities will probably remain unchanged this year, while the changes will start to be noticed from 2022. The focus seems to be on the huge customer base offered by the Indian market. The scaling up of Samsung’s operations in India will help it to shore up its numbers in the subcontinent. The production redistribution will see India accounting for 25% of the total production in 2026, while Vietnam will have 20%, Indonesia, 14%, and Brazil, 6%.
Samsung continues to firm up its operations and has factored some degree of uncertainty into its production, as there is room for an additional 20% of units produced as a reserve in the situation of a surge in demand beyond the projected numbers.
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(source)
