Published by Samsung Electronics, reports for the first six months of this year let’s judgeThis South Korean company’s sales in China fell 41.5% to $9.4 billion. While China accounted for 26.4% of Samsung’s total revenue for the six months a year earlier, that figure has now fallen to 21.7%.
Previously, Samsung’s sales in China had fallen to this level in 2019, but at the end of 2021, that country accounted for 29.9% of Samsung Electronics’ total sales. Last year, China’s share of Samsung’s revenue structure fell to 26.4% in the first six months, but by the end of 2022 it had already fallen to 25.8%. In 2018, when the so-called “trade war” between the US and China had not yet gained momentum, Samsung generated up to 32.1% of all revenue in the latter country.
Both Americas continue to increase their share of Samsung’s revenue structure. In 2021, China generated 29.9% of the company’s total sales, while America accounted for 29.2%. At the end of last year, both Americas (31.1%) overtook Samsung’s Chinese business (25.8%).
If we talk specifically about Samsung’s semiconductor business in China, revenue from the company’s core division fell 49.5% to $4.9 billion in the first half of this year. At the same time, net income fell 16.6% to $858 million. Samsung’s workforce in China fell from 599 people in 2020 to 477 people last year. Elsewhere in Asia and Japan, Samsung’s workforce has only grown over the same period. The number of companies in one way or another related to Samsung in China reached 87 units in 2018, but fell to 65 units in the first half of the current year. In addition to the intensified geopolitical problems of recent times, this is also being helped by China’s declining attractiveness as a production location for foreign companies. The wage level of Chinese workers has risen significantly in recent years, and some of the neighboring countries offer more attractive conditions for organizing local production.