Samsung's only TV factory in the Chinese mainland could be shut down at the end of October and sold to a TV foundry, laoyaoba.com quoted a source as saying.
Samsung Electronics is currently negotiating employee compensation packages, the report said.
The source said that Samsung Electronics is negotiating with some TV foundries to sell the Tianjin Samsung TV factory to some of its foundries that do not have TV brands, so Foxconn, Innolux, TCL SCBC and AOC have no chance.
The report said that Samsung TV OEM AmTRAN is very keen to take over the Tianjin Samsung TV factory, and its senior management has already visited Samsung Electronics Korea headquarters twice to discuss the acquisition.
If AmTRAN can acquire Samsung TV factory in Tianjin, not only will get Samsung's high-end TV OEM orders, but also expected to improve the level of TV OEM.
Tianjin Samsung TV factory currently has three TV assembly lines, 623 employees. It was originally an important overseas TV production base of Samsung Electronics, to meet the Samsung TV market in China and part of the overseas market demand.
However, since 2013, Chinese TV brands have gradually risen, foreign brands are steadily losing ground, and Samsung TV market share has been eroded by Chinese brand manufacturers, and sales continue to decline.
In 2019, Samsung TV sales in China will be just over 1 million units, accounting for about 2 percent of the market.
"At present, Samsung TV sales in China and its neighboring countries can no longer meet the crop rate of the Samsung TV factory in Tianjin," the source pointed out.
"Samsung TV overseas orders are again handed over to TV factories in Vietnam, India, Brazil, Europe and Mexico, plus rising labor costs in China, which could be the reason for the suspension of production at the Tianjin Samsung TV factory," the source said.
For the past three years, the Tianjin Samsung TV plant has been reducing staff, reducing capacity and cutting costs to maintain operations.
It was also previously rumored that Samsung Electronics was considering cutting production at the Tianjin TV plant because its TV sales are slowing and labor costs in China are rising.
At the same time, Samsung TV has also handed over some of its low-end TV products to TV OEMs such as Servotronix, Shenzhen KTC Technology and AmTRAN, and plans to release more TV orders.
Samsung's high-end TVs sold in China - QLED TVs - has been produced by the Tianjin Samsung TV factory, if the Tianjin Samsung TV factory shut down, Samsung's high-end TVs may be taken over from the manufacturer responsible for the production of the Tianjin Samsung TV factory.
Samsung denies shifting most of China display production to Vietnam
