Samsung may shut down most China operations except smartphones, chips

Samsung Electronics is considering a major restructuring of its operations in China, focusing on its most profitable and strategically important segments.

The company plans to retain only two business lines in the country—smartphone production and semiconductor memory chips, according to foreign media.

Divisions related to home appliances, consumer electronics, and displays, which have been showing weak performance, may be shut down or significantly reduced.

The restructuring also includes workforce reductions in loss-making units and outsourcing part of operations, including equipment distribution, while maintaining core manufacturing activities.

Meanwhile, Samsung’s semiconductor business in China continues to expand amid strong global demand for AI chips. The company’s investment in its Xi’an chip plant increased by 67.5% year-on-year in 2025. 

The mobile division, despite holding a low smartphone market share in China, is also expected to be retained due to its importance in the global supply chain.

By Jeyhun Aghazada