Reduce supply chain risks, Samsung strengthens cooperation with local partners in South Korea
According to BusinessKorea, 11 of Samsung Electronics' 13 new partners this year are Korean companies, with the proportion of domestic partners exceeding half for the first time, marking that Samsung Electronics has crossed an important threshold this year. This move is seen as Samsung's intention to strengthen its supply chain centered around domestic Korean enterprises, in order to minimize the uncertainty brought about by the geopolitical crisis.
On August 13th, Samsung Electronics' 2023 partner list showed that out of 113 companies this year, there are 59 companies headquartered in South Korea. The newly added partners include SoluM, an electronic component company spun off from Samsung Electric in 2015, Samsung Pure Chemicals, a semiconductor hydrogen peroxide manufacturer, and UIL, a mobile phone and electronic component supplier.
The number of Korean companies among Samsung Electronics' partners has increased from 50 out of 103 last year to 59 this year. Therefore, the share of Korean enterprises has increased from 39% in 2021 to 48% in 2022, and has exceeded half this year, reaching 52%. This marks the first time since Samsung Electronics announced its partner list, the share of domestic partners in South Korea has exceeded 50%.
As part of its efforts to establish a sustainable supply chain, Samsung Electronics has been disclosing its main partner list since 2018. The companies disclosed this time include companies that hold over 80% of the trading shares among over 700 major partner companies and have agreed to disclose them to the public.
Samsung Electronics' share of domestic partners in South Korea continues to grow year by year, which is due to the increased global uncertainty caused by factors such as the tension between China and the United States, the Russia-Ukraine conflict and so on, highlighting the urgent need to stabilize the supply chain. In addition, the trend of countries such as the United States and Europe restructuring their supply chains with a focus on domestic resources has also affected this strategy. The industry has observed that the decline in the share of Chinese enterprises is also affected by this situation. Although the number of Chinese partners remains unchanged, the proportion has slightly decreased, from 7.8% last year to 7.1%.
On the contrary, Samsung's dependence on the United States and Vietnam is increasing. To ensure a stable supply chain, Samsung is promoting increased transactions with companies headquartered in South Korea to ensure a solid foothold. At the same time, Samsung Electronics is transferring the bases of its main partners from China to places such as Vietnam.
When considering the location of factories supplying Samsung Electronics rather than the nationality of their cooperating companies, it was found that the number of companies with factories in China has decreased from 24 last year to 21 this year. On the other hand, the number of factories in South Korea has increased from 55 to 62, from 28 to 34 in Vietnam, and from 20 to 22 in the United States.
On August 13th, Samsung Electronics' 2023 partner list showed that out of 113 companies this year, there are 59 companies headquartered in South Korea. The newly added partners include SoluM, an electronic component company spun off from Samsung Electric in 2015, Samsung Pure Chemicals, a semiconductor hydrogen peroxide manufacturer, and UIL, a mobile phone and electronic component supplier.
The number of Korean companies among Samsung Electronics' partners has increased from 50 out of 103 last year to 59 this year. Therefore, the share of Korean enterprises has increased from 39% in 2021 to 48% in 2022, and has exceeded half this year, reaching 52%. This marks the first time since Samsung Electronics announced its partner list, the share of domestic partners in South Korea has exceeded 50%.
As part of its efforts to establish a sustainable supply chain, Samsung Electronics has been disclosing its main partner list since 2018. The companies disclosed this time include companies that hold over 80% of the trading shares among over 700 major partner companies and have agreed to disclose them to the public.
Samsung Electronics' share of domestic partners in South Korea continues to grow year by year, which is due to the increased global uncertainty caused by factors such as the tension between China and the United States, the Russia-Ukraine conflict and so on, highlighting the urgent need to stabilize the supply chain. In addition, the trend of countries such as the United States and Europe restructuring their supply chains with a focus on domestic resources has also affected this strategy. The industry has observed that the decline in the share of Chinese enterprises is also affected by this situation. Although the number of Chinese partners remains unchanged, the proportion has slightly decreased, from 7.8% last year to 7.1%.
On the contrary, Samsung's dependence on the United States and Vietnam is increasing. To ensure a stable supply chain, Samsung is promoting increased transactions with companies headquartered in South Korea to ensure a solid foothold. At the same time, Samsung Electronics is transferring the bases of its main partners from China to places such as Vietnam.
When considering the location of factories supplying Samsung Electronics rather than the nationality of their cooperating companies, it was found that the number of companies with factories in China has decreased from 24 last year to 21 this year. On the other hand, the number of factories in South Korea has increased from 55 to 62, from 28 to 34 in Vietnam, and from 20 to 22 in the United States.