Samsung Mexico "cuts off its arm": production suspension, layoffs and industrial chain transfer

As the operating costs of the Mexican factory have been under pressure due to rising local inflation (the inflation rate will reach 7.2% in 2024), coupled with the risk of tariffs, Samsung has to reduce production capacity. Samsung is accelerating the transfer of part of its production capacity to Southeast Asian countries such as Vietnam and Malaysia, but the migration cycle takes 18-24 months, and the short-term capacity gap may affect the global chip supply.