Samsung will shutter its PC production plant in China as it looks to save costs in reaction to "fierce market competition".
According to the South China Morning Post, the South Korean tech giant will close its Suzhou manufacturing facility as early as the end of this month, affecting half of its 1,700 employees that are on a contract at the facility.
Reports claim that Samsung will shift production to its existing facility in Vietnam.
Suzhou Computer, the Samsung unit which runs the plant, was founded in 2002 and originally assembled PCs to be sold to South Korea, North America and China.
The plant employed 6,500 staff at its peak, with its headcount shrinking down to today's 1,700.
In a notice reported by South China Morning Post, the Suzhou Computer plant will instead focus on research and development.
Samsung said the move is part of "ongoing efforts to enhance efficiency across our global production bases," and also claimed that it would help affected employees find new roles within the company.
The vendor closed its last remaining mobile phone factory in China in 2019 as it shifted production to Vietnam.
Samsung is just the latest PC manufacturer to centralise its manufacturing operations in recent years. Japanese PC maker Fujitsu shuttered its German-based plant and moved production to its main facility in Japan.
Increasing tensions between the US and China have prompted tech companies to rethink their supply chains. Apple's manufacturing partners are reportedly looking to relocate and diversity production to other countries such as Vietnam and India.
The PC market logged its first year of growth in seven years in 2019, according to Gartner, with shipments growing by 0.6 per cent to 261.2 million units. End of support for Windows 7 and upgrades to Windows 10 lifted PC shipment numbers during the year.
However, the three largest vendors have been tightening their stranglehold on the PC market, with HP, Lenovo and Dell all increasing their market share in 2019.
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