Hopes to Shanghai Apple
Samsung plans to invest $1.7 billion in expanding and fitting out its operations in Kunshan, west of Shanghai.
The move is being seen as part of Samsung’s move to diversify its clients and exert greater control over its sprawling manufacturing network, which includes 250 supplier factories in China. It has already been announced that Samsung is building a $7 billion chip complex in Xi'an, an industrial city in northwestern China.
It looks like the Kunshan investment will be used to build workshops, purchase equipment and set up research institutes operated by Samsung Electro-Mechanics. This will support a chip carrier related project. While the move will provide Samsung with cheap labour, it also means that it could be hit by the sort of problems which have bedeviled Apple in China. Recently Jobs Mob had to fire one of its suppliers aafter it ddiscovered that it was hiring kids to make its gadgets.
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Nick Farrell
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