Samsung TV factory in Russia suspends operations

Samsung TV factory in Russia suspends operations

In response to a report by The Elec, Samsung quickly halted operations at its TV manufacturing unit in Kaluga, close to Moscow, Russia, in gentle of the continued Russian – Ukrainian battle. The report claims the suspension of operations was as a result of Samsung confronted obstacles within the provide of necessary parts for TVs akin to panels. Not solely Samsung, however LG can be evaluating suspending operations at its dwelling equipment and TV factories in Russia.

Samsung Electronics’ principal concern is that if the macroeconomic scenario persists for a very long time, the corporate’s enterprise technique might be severely disrupted. Samsung Electronics has beforehand introduced that contemplating the present geopolitical improvement scenario, the firm’s product shipments to Russia have been suspended. The corporate additional mentioned in an electronic mail assertion that it’s actively monitoring the event of this complicated scenario. Samsung has suspended all exports to Russia, from chips to smartphones and client electronics.

Analysis agency Omida predicts that if tensions between Russia and Ukraine persist, it may scale back Samsung TV shipments by 10% to 50%. Samsung Electronics plans to make up for the decline in shipments in these markets by focusing on different markets.

Samsung halts LCD manufacturing

Just a few years in the past, Samsung and LG had been the main gamers within the world LCD market. Nonetheless, there are actually a number of Chinese language panel producers available in the market. Extra so, these Chinese language corporations have surpassed Samsung and LG to turn into the primary LCD panel producers in recent times. Chinese language corporations akin to BOE and CSOT are quickly increasing their market shares. This makes it very troublesome for the South Korean producers to compete. Presently, BOE is now the world’s largest producer of LCD panels.

Initially, Samsung was to go away the LCD panel market on the finish of 2020. Nonetheless, there was a pseudo enhance in costs and this made the corporate proceed to function for an additional two years. However, trying on the present scenario, Samsung is not going to wait till the top of the 12 months. The value has been falling considerably and it’s now on a free fall. By January this 12 months, the typical value of a 32 -inch panel was solely $38, a 64% drop relative to January final 12 months.

For this important drop in value, Samsung will withdraw from LCD panel manufacturing half a 12 months forward of schedule. It can cease manufacturing in June this 12 months. Samsung Show, a subsidiary of Samsung Electronics, will flip to higher-end QD quantum dot panels. The LCD panels that the corporate wants will flip to procurement.