Tech giant Samsung Electronics Co Ltd has announced plans to invest $2.4 billion in new battery and capacitor plants in Tianjian, China as part of its new adjusted strategy in China after it has closed one of its smartphone manufacturing plants in the same city.
This shift is a result of the fierce competition that Samsung has been facing from local competitors offering reasonably prices smartphones. Despite being the world's biggest smartphone maker, Samsung's sales are close to negligible in China. Huawei Technologies Co Ltd continued to lead China's smartphone market during the third quarter of this year, followed by Vivo and Oppo. However, Samsung is losing most ground on mid-range and cheaper smartphones.
Samsung’s $2.4 billion investment in Tianjin will be used to expand power battery lines and establish a multi-layer ceramics capacitors factory for automotive electronics in the city, according to the Tianjin municipal government. The batteries will be mainly used in energy storage systems, electric cars and electric tools.
This move is of a great importance to the company and will create more value and orient it towards a new direction that seems very promising.