Known Apple suppliers, Foxconn and Pegatron, are expanding their production capacities outside of China by increasing their overseas production. This is in line with the plans of globalization of operations.

The Taiwanese based firm, Foxconn, has set up factories in Vietnam. This site will have an overall production capacity that could meet demand by 2021 and 2022, as per the company’s chairman Liu Young-Way. Although, it is still uncertain whether the production capacity in the region can be further expanded since it is increasingly difficult to acquire factory sites in the country.

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Furthermore, Foxconn also has plan to set up production sites in India as well. The region holds a huge market potential, but the progress would still depend on the country’s individual environments, politics, and other important factors. Foxconn is also working to establish a site in Wisconsin, US. These production lines will focus on local demand exclusively and will also include AI based devices, servers, telecom/networking devices and other software based products as well.

Similarly, the DigiTimes report also stated that Pegatron has started contructing a factory in Indonesia in 2019, with production having started already. The company’s president and CEO Liao Syh-jang revealed this information and also added that it has also kicked off its production at a factory in Vietnam. Like Foxconn, the Apple supplier, Pegatron, is also planning on building a factory in India and plans to start production in the region by 2021.

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A fresh report has suggested that Apple might be looking to strengthen its base in India, especially with its manufacturing side. Apparently, several meetings have taken place with top executives from the Cupertino based giant and the local government officials, which have discussed the possibility of shifting production capacity from China to India.

Recently, Apple has been concentrating efforts on offloading production sites from China to other regions like Vietnam and India. The new report reveals that the company is now looking into shifting a fifth of the production capacity from China to India. This will scale up its local manufacturing revenues and could have Apple shell out nearly 5 billion US Dollars over the course of the next 5 years, through its known contract manufacturers (Wistron and Foxconn).

The implications of this sizeable shift in the manufacturing line are huge, with India soon becoming an exported of the iPhone series and, by its extension, India’s largest exporter as well. According to a government official, “We expect Apple to $40 billion worth of smartphones, mostly for exports through its contract manufacturers Wistron and Foxconn, availing the benefits under the production-linked incentive (PLI) scheme.”

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Unfortunately, Apple has yet to give out any official statements regarding this big move. Although, sources close to the tech giant’s plans have claimed that there were some issues in the government’s “ambitious” PLI scheme. These are basically incentives provided by the government to attract local based smartphone production by foreign brands, which directly boosts exports.

Apple has shown interest in expanding in the Southeast Asian region, especially in India in recent years. While the company sells 1.5 billion US Dollars worth of smartphone in India, only a third is actually from locally made manufacturing plants. The move to grow and diversify its lineup and handset capacity could see lowered pricing in the near future and a jump in sales in the country, where Apple has historically faced issues in.

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Samsung, the world’s largest smartphone manufacturer, is facing the lowest operation rate ever in its entire history. Despite being one of the largest consumer grade electronics maker and a major multinational brand, the effects of the Coronavirus pandemic has severely crippled its operations.

According to reports, the South Korean tech giant has halved its smartphone manufacturing. The company even had to temporarily shut down various factories and offline stores across the globe, due to the various government enforcing local lockdowns. For those unaware, a new strand of Coronavirus has caused a global pandemic, leading governments to shut down various factories and production lines. This has affected various fields including the smartphone industry.

ETNews have reported that Samsung might be facing an all time low of its operation rates in the Q2 of 2020. Furthermore, the closed factories will also lead to increased fixed costs, lower production output, lower sales, and dropped revenues. As it stands right now, raising the production will only make inventories pile up, as the company already has stocks remaining from previous months.

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At the moment, it seems like the global economy is heading for a recession, which in turn makes people less likely to spend on things that are considered non-essential. Samsung has already closed down its smartphone and home appliances factories in nations like India, Brazil, Mexico, Russia, Slovakia, Vietnam, and even the US. Additionally, it is expected that the closure and lockdowns will extend by another month at the very least.

On the other side, Samsung is also helping wherever it can to combat the COVID-19 virus. The firm has donated about $24.6 million already to its home country, South Korea and $5 million in India. It also offered special schemes that allow disinfecting of smartphone screens for free. So, despite best efforts, the effects of the Coronavirus pandemic are all but devastating right now.

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Sony had issued an announcement earlier today (27th March 2020) that mentioned the effects of the recent coronavirus outbreak on its certain businesses. In the official statement, the company said that its proprietary CMOS image sensor’s production is currently not severely affected at the moment. The announcement was made on the company’s official Weibo, a Chinese microbloggin website, account.

According to Sony, the viral pandemic had initially caused the shut down of four different manufacturing plants in China, all of which have already resumed operations last month on 10th February 2020. Similarly, the Japanese tech giant also mentioned that the company’s factories in the United Kingdom and Malaysia have also been affected by the outbreak as well.

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However, despite all of the halts in production, Sony said its CMOS (complementary metal-oxide-semiconductor) image sensors production has not been severely impacted. In other words, the material supply has been mostly unscathed, including the raw materials that are processor for the production of its proprietary camera sensors.

For those unaware, Sony is one of the world’s leading figures in imaging technology and camera sensors. Market research and analysis have revealed that the company shares 48 percent of the total image sensor market. On the other hand, Samsung, the South Korean tech giant only has a market share of 21 percent.

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The new strand of Coronavirus has recently been classified as a pandemic by the World Health Organization (WHO). The outbreak began from the Wuhan province in China and has since spread and has confirmed cases in upwards of 170 countries. Now, amidst the various government implemented lockdowns, smartphone brands like Samsung, Oppo and Vivo are now temporarily suspending production in India.

As of right now, the production lines will remain closed at least till the 25th of March 2020. For those unaware, the Coronavirus outbreak has been adversely affecting the Indian subcontinent, with the country’s capital city of Delhi being on a strict lockdown till the 31st of March 2020. During this time and growing fears, the major smartphone brands including Samsung, Oppo, and Vivo have taken the outbreak into consideration have closed its production lines for now.

The viral outbreak has already majorly affected various factories and manufacturing sites for any and every industry, especially those present in China. But now, it seems the shutdowns are becoming more rampant with South Korean sites temporarily shutting down previously this month and now India seeing a rising number of confirmed infected cases as well.

According to Samsung’s Greater Noida factory, the largest manufacturing facility from the South Korean tech giant in the world, “following the Indian government’s policy, we will temporarily halt operations of our Noida factory until the 25th. We will work hard to make sure there is no setback in supplying our products.” This production site is also known to produce home appliance products like air conditioners, refrigerations and washing machines and more, so more than just the smartphone industry is in dire straits.

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Similar to Samsung, LG has also reportedly shut down the production of its home appliances plant in Greater Noida and Pune, Maharashtra. On the other hand, Vivo has instructed all non-factory workers to work from home, which is an increasingly popular alternative these days. This shut down has occurred due to confirmed COVID-19 infected cases being found in the various production sites.

There have been a few exceptions, including Ericsson and Nokia, the two largest telecom equipment providers in India, that still have their factories running. Although, production has been scaled down by 50 percent while both companies have received this exception from proper authoritative bodies. However, these are just special cases and you can expect more smartphone brands with production lines in India to follow suit with temporary closures.

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Samsung Electronics, the known electronics company, is actively pushing for a work from home business model for a lot of its employees. The company “strongly advised” this decision and is a step towards hampering the spread of the recent coronavirus pandemic.

For those unaware, China was recently hit with the Coronavirus outbreak, which led to many manufacturing lines shutting down and a massive number of infected cases. Now, it is a widespread global phenomenon as every nation in the world prepares for the worst case scenario that China is facing. In the midst of this, company’s such as the South Korean tech giant, Samsung, are advocating for remote of home working policies “Where possible.”

According to the source, internal memos and documents circulating detail plans on curbing the further escalation of the Coronavirus infection. Samsung will now have health screening in the entrances of its facilities while international travels have been restricted to only “mission critical journeys.” Furthermore, the company has also made a special task force that will go around the globe to track and implement the latest expert advice during this time. Going as far as sending special care packages to few that are working from home or are under self quarantine.

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Previously, we had reported on Samsung production lines closing down in Gumi in South Korea. The factory was closed due to confirmed cases of the COVID-19 infections. During this time, the company is urging employees to work from home when possible, but these probably won’t be taken up by workers in the manufacturing operations. Currently, Samsung employs more than 300,000 people globally. Including, 52 sales offices, 15 regional offices and dozens of research and development centers.

The impacts of the viral outbreak can be seen in the entire industry. Apple, Samsung and more have all been suffering from shutdowns and halts in production. While press conferences and launch events have also been canceled, in place of live streaming. The confirmed cases in on site manufacturing floors have only made the situation direr as well.

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Samsung, the South Korean tech giant, has just announced that it has started the mass production of 6nm and 7nm EUV (Extreme Ultraviolet) chipsets. These are the latest from the company and are being manufactured in Samsung’s newly built V1 facility, a first of its kind dedicated production line for synthesizing chips.

For those unaware, Samsung Electronics is a diverse group with its business operations ranging apart from just home appliances and consumer grade electronic products like smartphones. One of its most successful and impactful business is its chipset production, with the company being a market leader in this field. According to the official announcement, the company will be delivering its 6nm and 7nm EUV chips to its various customers in the first quarter of 2020.

Samsung’s V1 facility which is located in Hwaseong, South Korea, is a specialized facility with state of the art technology is responsible for the production. The company has even future proofed the facility as it is even capable of production of chipsets as small as 3nm in the near future. Notably, the 5nm process has already been depleted by Samsung, who is now moving over to 4nm chips.

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Furthermore, the overall investment that the Samsung facility will receive by the end of this year is estimated to be around 6 billion US Dollars. This will also cause the production capacity of the production line to grow to a size nearly triple that of last year. Similarly, its other manufacturing facilities like S1, S3 are also capable of synthesizing such sub-10nm wafers, which are currently in high demand.

According to Samsung, the EUV lithography process, which is the technology behind it, is crucial to creating more complex patterns on the wafers. Additionally, the chips made from this advanced process will serve various different purposed like 5G networking, artificial intelligence and a lot more. As of right now, the company has six production lines like this which are already taking in orders from industry giants like Qualcomm, Baidu, NVIDIA, and even Intel.

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