The biggest television manufacturer in the world, South Korea’s Samsung Electronics, said today that it would cease production of televisions in Thailand this quarter, in order to streamline its global manufacturing footprint.
Samsung halts production
The somewhat unexpected move comes after last year’s announcement of more than $560 million investments to build consumer goods in neighbouring Vietnam, mainly to produce televisions, as part of the company’s efforts to boost output across segments such as smartphones and displays in the country which is less costly than Thailand.
A Samsung spokesperson has not said if the company will move television production from Thailand to Vietnam. South Korea’s LG Electronics Inc, which is second in the global TV market, will also soon move its TV production from Thailand to Vietnam, thanks to cheaper labour costs and closer proximity to Chinese-based suppliers.
So, next time you go into one of the huge electronics shops and marvel at all the Samsung and LG widescreen, curved and super-thin televisions, rather than being made in Thailand they’ll have probably been assembled in Vietnam…
It remains to be seen whether other industry giants will move their electronics production to neighbouring Asian countries, but this news is surely disappointing for Thailand’s manufacturing industry.