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Samsung Shifts Major Manufacturing bases to SIP

The construction of the second semiconductor plant of Samsung started on July 7 in SIP as a major step to consolidate its leading position in the global semiconductor manufacturing. On his inspection of the production bases for electrical appliances (the white goods) in SIP, Vice-president and CEO of Samsung expresses that Samsung would give more priority to the growth of its bases in SIP and to push forward complete localization of operation from product R&D, procurement of raw materials, production, and sales. The ever-increasing investment in SIP shows that the major focus of manufacturing is being shifted from HQ in Korea onto SIP.

"You have to become a Chinese company if you want to survive in China." That is the motto for Samsung. By the end of last year, Samsung had set up 14 manufacturing plants and 4 R&D centers in China, of which are located in SIP Samsung Electronics (Suzhou) Semiconductor Co., Ltd., Suzhou Samsung Electronics Co., Ltd., Suzhou Samsung Electronic LCD Co., Ltd., Samsung Semiconductor (China) R&D Co., Ltd., and Suzhou Samsung Electronics and Computer Co., Ltd., etc. Presently Samsung has three production bases in SIP for white goods, laptop computers, and LCD, operated by Suzhou Samsung Electronics, Suzhou Samsung Semiconductor, and Suzhou Samsung LCD.

The Samsung R&D center in SIP is one of the four R&D centers in China, oriented to semiconductor, communication, software, and external designs.

Reportedly, Samsung has transferred all its production lines of laptop computers to SIP since the first quarter of last year, and only the research, development and sales section now remains in Korea.

Sept. 5, 2006


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