Amid rising geopolitical risks, official data shows that Samsung Electronics has been localizing its suppliers, with Korea-based suppliers accounting for over 50% share in 2023.
According to Korean media outlet ET News, Samsung increased its suppliers from 100 in 2022 to 113 in 2023, and among the 13 additional suppliers added, 11 are based in South Korea. Overall, 59, or 52.2% of Samsung's suppliers, are Korea-based, more than that in the past two years.
Samsung expanded its suppliers in the US and Vietnam, while China-based companies remain eight of Samsung's suppliers in 2023 as in 2022, with the share falling from 7.8% to 7.1%.
Meanwhile, according to Samsung's supplier list on its website, Korea accounts for 54 of 198 manufacturing facilities supplying Samsung. Facilities in China, Vietnam, and the US constitute 29, 28, and 28, respectively. Except for the US, Asia remains Samsung's primary manufacturing hub.
Amid rising geopolitical tensions in Asia and Europe, major economies worldwide seek to build more resilient supply chains through supplier localization and regionalization. Lee Jae-Yong, the executive chairman of Samsung Electronics, said in March that the company would invest KRW60.1 trillion (US$44.9 billion) to increase localized sourcing.
Source: Samsung, August 2023
Source: Samsung, August 2023
Source: Samsung, August 2023
