7 ms·

Samsung to halt production at its last computer factory in China

156 points by whalesalad 6y ago

phkahler 6y ago
>> amid rising Chinese labour costs, a U.S.-China trade war and the blow from the COVID-19 pandemic. Do companies think about the military situation over there?
- tcskeptic 6y ago
  As someone who has spent the last year disentangling a manufacturing supply chain from China — we did, and we also cared about the IP protection concerns in China. These circumstances have us the air cover to move forward with long discussed and to leave China, with little to no impact to our ability to conduct business in the country. Its not a nice reality, but that’s what it is.
  - Melting_Harps 6y ago
    > As someone who has spent the last year disentangling a manufacturing supply chain from China What did that entail? Details welcomed! I'm currently finishing up my Final on my Supply Chain Operations course and the focus of my research paper is the low quality PPE manufacturing that has been centralized in China, specifically the provinces outside the city outside of Wuhan, which are currently undergoing massive flood damage and causing massive disruption and delays: https://www.manufacturing.net/supply-chain/news/21140690/report-china-floods-delaying-ppe-shipments-to-us https://www.manufacturing.net/supply-chain/news/21140690/rep... My proposal is entirely theoretical, although I do conclude with utilizing possible intermediaries (currently operational) in Hong Kong and Taiwan that can support a portion of the demand as they did during the initial outbreak in January, but it currently remains an entirely unsubstantial amount of daily output to compete with China (when its fully operational) for all of the entire Western Nations needs that are currently undertaking sanctions against CCP/China. I make the argument of questionable tolerances in QC/QA, which when dealing with PPE can be deadly and a critical point of exposure to spread and increase overall infection rates. I'd like to hear what Industry/Sector you focused on and any significant roadblocks you may have encountered if you're willing to share.
    - irontinkerer 6y ago
      > What did that entail? Details welcomed! Yes, I would love to read a detailed article about what this entails
      - tcskeptic 6y ago
        It's pretty boring actually, mostly finding a dual source for all the components, even if you have to develop new suppliers and then moving the volume over as it ramps. Assembly moved to Thailand, sourcing moved to Taiwan, India and some from Vietnam and Brazil. The biggest challenge we have faced is that other countries do not have the amazing area of outside processing that China does and so samll engineering changes are more difficult.
- runawaybottle 6y ago
  Wait ... Chinese labor is now also too expensive? Give me a fucking break already. What do these people want, slaves? I leave this here: https://www.theonion.com/jeff-bezos-tables-latest-breakthrough-cost-cutting-idea-1824144898/amp https://www.theonion.com/jeff-bezos-tables-latest-breakthrou...
  - api 6y ago
    China hasn't competed on labor cost for a while. They now have the largest concentration of manufacturing and tooling skill in one place. Cheap labor seekers are going to cheaper parts of India (but that won't stay cheap for long), Africa, Indonesia, etc. Africa is establishing some kind of union to reduce concerns about stability, and if that works we will see the 80s-90s in China repeated there. Someday there won't be any large pools of cheap labor left. Unless automation is much cheaper by then, we will see massive inflation in manufactured goods. Also: if Africa industrializes and we don't have cheap fossil fuel alternatives, we should just start moving Miami and building the New York Sea Wall. Another half billion to billion people will be joining the new global middle class, and after centuries of colonialism Africa is not going to listen to Westerners asking them nicely to stay poor so we can meet a CO2 target.
    - toiletfuneral 6y ago
      So once you guys fully eliminate human labor who do you think will buy all the dumb shit capitalism produces?
    - hlfy_hn 6y ago
      China's strength was never cheap labour. 1. Educated people (most former communist countries have fewer analphabets than the US) 2. Tons of people 3. Infrastructure and clustering. 4. The political will to move forward. You won't see this in Africa. India is possible but unlikely.
      - lostlogin 6y ago
        > analphabet Illiterate. I initially thought it an amusing typo, and I haven’t missed the irony in not knowing the word. Thanks, I learned something.
- ganfortran 6y ago
  I don't think South Korean companies will have such concerns.
  - wow_no 6y ago
    South Korea is part of that cadre of countries that’s beyond allies to the USA - Israel, Canada, etc. they certainly care about military relations. There’s a few American troops on the SK/NK border, too.

156 points by whalesalad 6y ago

>> amid rising Chinese labour costs, a U.S.-China trade war and the blow from the COVID-19 pandemic. Do companies think about the military situation over there?

tcskeptic 6y ago
As someone who has spent the last year disentangling a manufacturing supply chain from China — we did, and we also cared about the IP protection concerns in China. These circumstances have us the air cover to move forward with long discussed and to leave China, with little to no impact to our ability to conduct business in the country. Its not a nice reality, but that’s what it is.
- Melting_Harps 6y ago
  > As someone who has spent the last year disentangling a manufacturing supply chain from China What did that entail? Details welcomed! I'm currently finishing up my Final on my Supply Chain Operations course and the focus of my research paper is the low quality PPE manufacturing that has been centralized in China, specifically the provinces outside the city outside of Wuhan, which are currently undergoing massive flood damage and causing massive disruption and delays: https://www.manufacturing.net/supply-chain/news/21140690/report-china-floods-delaying-ppe-shipments-to-us https://www.manufacturing.net/supply-chain/news/21140690/rep... My proposal is entirely theoretical, although I do conclude with utilizing possible intermediaries (currently operational) in Hong Kong and Taiwan that can support a portion of the demand as they did during the initial outbreak in January, but it currently remains an entirely unsubstantial amount of daily output to compete with China (when its fully operational) for all of the entire Western Nations needs that are currently undertaking sanctions against CCP/China. I make the argument of questionable tolerances in QC/QA, which when dealing with PPE can be deadly and a critical point of exposure to spread and increase overall infection rates. I'd like to hear what Industry/Sector you focused on and any significant roadblocks you may have encountered if you're willing to share.
  - irontinkerer 6y ago
    > What did that entail? Details welcomed! Yes, I would love to read a detailed article about what this entails
    - tcskeptic 6y ago
      It's pretty boring actually, mostly finding a dual source for all the components, even if you have to develop new suppliers and then moving the volume over as it ramps. Assembly moved to Thailand, sourcing moved to Taiwan, India and some from Vietnam and Brazil. The biggest challenge we have faced is that other countries do not have the amazing area of outside processing that China does and so samll engineering changes are more difficult.
runawaybottle 6y ago
Wait ... Chinese labor is now also too expensive? Give me a fucking break already. What do these people want, slaves? I leave this here: https://www.theonion.com/jeff-bezos-tables-latest-breakthrough-cost-cutting-idea-1824144898/amp https://www.theonion.com/jeff-bezos-tables-latest-breakthrou...
- api 6y ago
  China hasn't competed on labor cost for a while. They now have the largest concentration of manufacturing and tooling skill in one place. Cheap labor seekers are going to cheaper parts of India (but that won't stay cheap for long), Africa, Indonesia, etc. Africa is establishing some kind of union to reduce concerns about stability, and if that works we will see the 80s-90s in China repeated there. Someday there won't be any large pools of cheap labor left. Unless automation is much cheaper by then, we will see massive inflation in manufactured goods. Also: if Africa industrializes and we don't have cheap fossil fuel alternatives, we should just start moving Miami and building the New York Sea Wall. Another half billion to billion people will be joining the new global middle class, and after centuries of colonialism Africa is not going to listen to Westerners asking them nicely to stay poor so we can meet a CO2 target.
  - toiletfuneral 6y ago
    So once you guys fully eliminate human labor who do you think will buy all the dumb shit capitalism produces?
  - hlfy_hn 6y ago
    China's strength was never cheap labour. 1. Educated people (most former communist countries have fewer analphabets than the US) 2. Tons of people 3. Infrastructure and clustering. 4. The political will to move forward. You won't see this in Africa. India is possible but unlikely.
    - lostlogin 6y ago
      > analphabet Illiterate. I initially thought it an amusing typo, and I haven’t missed the irony in not knowing the word. Thanks, I learned something.
ganfortran 6y ago
I don't think South Korean companies will have such concerns.
- wow_no 6y ago
  South Korea is part of that cadre of countries that’s beyond allies to the USA - Israel, Canada, etc. they certainly care about military relations. There’s a few American troops on the SK/NK border, too.