Samsung Electro-Mechanics (Semco) has officially shut down its smartphone motherboard (HDI) factory in Kunshan, China, as part of a broader strategy to pivot toward higher-value business segments. The company confirmed that it completed the liquidation of the Kunshan facility by the end of 2024, effectively ending its presence in the smartphone HDI market.
According to reports from Chosun Biz and Ddaily, the company announced in its 2024 audit report that the Kunshan plant has been liquidated after being in operation for 15 years. This plant was originally designed to produce high-density interconnect (HDI) boards for smartphones, capitalizing on the rapid growth of the mobile industry.
The plant was well-positioned during the early boom of smartphones in the 2010s. However, as the smartphone market matured and competition in the HDI sector intensified—particularly with the rise of low-cost Chinese manufacturers—Semco saw its profitability in the sector erode.
In December 2019, the company decided to close the Kunshan factory, and it has now completed a five-year liquidation process, marking the end of its involvement in the smartphone HDI market.
The Kunshan closure follows the company's completion of the liquidation of its Dongguan facility by the end of 2023. The Dongguan plant, which was the first Samsung Group operation in China following the normalization of relations between China and South Korea in 1992, produced a variety of products, including speakers, audio systems, and keyboards.
With the shutdown of its two factories in China, Semco now operates only its plants in China's high-tech zones and Tianjin. The Tianjin plant remains a key hub for the production of Multilayer Ceramic Capacitors (MLCC), a critical component used in Samsung's high-tech products. Samsung chairman Jae-Yong Lee has personally visited the Tianjin plant, underscoring its strategic importance.
Looking ahead, Semco is shifting its focus toward high-growth, high-value sectors such as artificial intelligence (AI) and automotive electronics. The company plans to accelerate its expansion in these markets through next-generation products like ABF substrates, automotive MLCCs, and glass substrates, as it looks to capitalize on emerging opportunities in the tech and automotive industries.
Article edited by Jack Wu
