Key Points:
- Samsung has decided to increase the production of Galaxy devices to 270 million produced by 2024.
- Automotive assembly in China is expected to grow to 23 million units, through a combination of original equipment manufacturers and contract manufacturers, combined development and manufacturing.
- Vietnamese factories, heavily outsourced, have a capacity of 28 million units.
Samsung has increased its production target for the Galaxy ecosystem for 2024 to 270 million devices from a previously set cumulative 253 million devices. This increase of 17 million units supports Samsung’s long-term managerial goals and determined effort to increase market share and meet the growing demand in the global market.
Another factor is that the JDM business has received a significant boost in China, which is also contributing to LG Display’s shipment growth, as reported by South Korea’s The Elec. Samsung is targeting higher JDM production in the current year from 44 million to 67 million units, of which 23 million is a huge jump. This change shows the extent to which Samsung relies on the integrated supply of products to eliminate expenses and increase efficiency.
Additionally, using supply chain management, Samsung continues to explore partnerships with manufacturers in Vietnam. So, the total number of portable products outsourced to both Hansol Technics and Dream Tech is 28 million. The marketplace will be managed by Hansol Technologies and Dream Tech; While Hansol Techniques is expected to handle a major portion of this, 25 million units will be shipped to the company. This efficient distribution reflects Samsung’s dedication in establishing superior logistics channels as well as strong production capabilities in various regions.
These changes in production strategies are a clear indication of Samsung’s reluctance to compete with other competitors in the ever-evolving market of mobile gadgets. With increased production capacity and sourcing partnerships around the world, Samsung seeks to meet growing consumer needs and position itself as a driving force at the forefront of technological innovation.
