On February 14, according to South Korean media ETnews, Samsung Electronics has transferred some overseas smartphone production lines to the Guiwei Factory in 1 Gyeongsangbuk-do, South Korea. This is a special measure taken by its main factories in Vietnam and other countries after experiencing production setbacks due to the impact of the COVID-19 pandemic.This is the first time that the Guiwei Factory has increased its production capacity after moving its production line overseas.

At present, Samsung Electronics produces about 300 million smartphones per year. Among them, the two factories in Beining and Taiyuan provinces of Vietnam are the largest production bases, accounting for about 60% of Samsung smartphone production. India’s Noida factory also has a production capacity of 100 million. Factories in Brazil and Indonesia adjust production capacity to local demand.

As Samsung Electronics’ only mobile phone production base in South Korea, the Guiwei Factory specializes in the production of flagship products such as folding screen smartphones and Galaxy S. However, its share of Samsung’s total production of electronic smartphones has gradually declined.

However, since last year, Samsung Electronics’ global manufacturing bases such as Vietnam have been closed due to the COVID-19 pandemic, and even serious production disruptions have occurred. As a special measure of supply chain management, the company seeks to “return” production capacity, that is, to relocate overseas production lines to South Korea.

At the same time, Samsung Electronics even moved its production line to the Guiwei Factory at the cost of increasing manufacturing, recognizing the need to improve the supervision and production level of high-end smartphones. It is reported that most of the flagship smartphone Galaxy S22 series, which will be officially released on the 25th, will be produced at the Guiwei Factory.

In addition to “returning” to the Guiwei Factory, Samsung Electronics also controls the output of each overseas factory. By spreading smartphone production concentrated in Vietnam around the world, even if factories in specific areas are closed, they can minimize losses. It is understood that Samsung Electronics is recommending the diversification of its global factory capacity to some major suppliers.