Top Chipmaker Samsung Forced To Slash Smartphone Production In Vietnam - Report - Samsung Electronics Co (OTC:SSNLF)

Samsung Electronics Co, Ltd SSNLF curtailed production at its massive smartphone plant in Vietnam to counter rising inventory amid reduced consumer spending, Reuters reports.
Vietnam's northern province of Thai Nguyen, one of Samsung's two mobile manufacturing bases in the country, accounts for half of its phone output. Samsung has invested $18 billion in the country, contributing 20% of Vietnam's total exports.
Samsung, which shipped ~270 million smartphones in 2021, claims the campus can make ~100 million devices annually. It overtook Intel Corp INTC as the top chip seller during the year.
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A worker acknowledged reduced working days with no overtime contrasting to 2021, when the pandemic was at its peak.
Other workers also acknowledged a slowdown in the business with unprecedented production and workday cuts.
Samsung acknowledged no plans to cut its annual production target in Vietnam.
Samsung also makes phones in South Korea and India.
It is relatively optimistic about smartphone demand in the second half aiming for foldable phone sales to surpass that of its past flagship smartphone, the Galaxy Note.
However, Gartner expects global smartphone shipments to decline by 6% this year due to consumer spending cuts and a sharp sales drop in China.
The U.S. - China rivalry is also set to cost the chipmaker as the countries laid down the criteria for chip production.
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