Production difficulties in the semiconductor industry and problems in the supply chain force companies to use different strategies. Samsung, one of the leading companies in this field, may be considering establishing a new production facility to ensure that its customers do not have supply problems.
Samsung will solve the supply shortage
The exact location of the foundry facility that Samsung is said to be building is unknown, but is expected to be built somewhere in Europe. Samsung also wants to further increase its outsourcing use at this facility. There are two companies mentioned for outsourcing: Vanguard and Powerchip. Samsung is currently co-manufacturing with Taiwanese company UMC.
Behind Samsung’s plan to increase outsourcing lies the goal of switching to a Just in Time strategy. With the strategy expected to be implemented in the facility to be established, production will be provided according to demand and will work with minimum stock. Thus, problems in the supply chain will be minimized.
Proximity to the automotive industry may be among the main reasons for Samsung to establish a production facility in Europe. We can say that the fact that many automobile and automotive parts manufacturers are in Europe and Samsung’s desire to produce in this field paves the way for the establishment of the new facility in Europe. Therefore, it will be easier to overcome the obstacles in the field of supply due to the proximity to the market. In addition, according to rumors, the company has already started the recruitment process to take place in the semiconductor field.
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