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Samsung steps up cooperation with China-based handset suppliers

Samsung Electronics has stepped up its contact with handset supply chain makers in China, aiming to strengthen its cooperation ties with ODMs and component suppliers to enable access to more competitive production capacity and component supplies, according to sources from Taiwan-based supply chain makers.

Samsung has visited a number of major suppliers in China, including O-film Tech, Holitech Technology, Truly-Optoelectronics and ODM BYD, the sources indicated.

BYD recently landed high-end smartphone orders from Samsung, which in turn will also benefit related upstream component suppliers associated with BYD, indicated the sources.

Samsung has seen its share in China's smartphone market continue to slide recently, and therefore needs to gear up its competitiveness in order to make a turnaround in the China market, said the sources.

However, Samsung's increasing purchases of parts and components from China will eventually result in a reduction in Samsung's orders from related suppliers in Taiwan, commented the sources.