Samsung Electro-Mechanics to Shut HDI Unit in China

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  • Kunshan Samsung Electro-Mechanics produces HDI, a type of printed circuit board used in electronic devices, including smartphones and laptops
  • Samsung has shifted operations to India and Vietnam in October amid the ongoing trade war between China and the US

According to a report by Yonhap news agency, Samsung Electro-Mechanics Co., an electronic components maker affiliated with Samsung Electronics, has stated that it will shut down one of its Chinese units that produce high density interconnect (HDI) substrates due to low profitability.

Kunshan Samsung Electro-Mechanics produces HDI, a type of printed circuit board used in electronic devices, including smartphones and laptops. The company informed the news daily that Kunshan Samsung Electro-Mechanics Co. in Jiangsu, China, will halt production and sales.

Fierce competition

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It added that it also plans to sell assets of the Chinese unit. The company has reportedly been struggling to make a profit in recent years due to fierce competition from low-cost Chinese and Taiwanese rivals.

Samsung has shifted operations to India and Vietnam in October amid the ongoing trade war between China and the US. Samsung’s market share in China has boiled down to one per cent recently. The company had a market share of 15 per cent in China around 2013.

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