As is well known, Samsung phones used to be mainly manufactured in China. However, due to the decline of Samsung smartphones in China and other reasons, Samsung's phone manufacturing gradually moved out of China.

Currently, Samsung phones are mostly no longer manufactured in China, except for some ODM models that are produced by ODM manufacturers. The rest of Samsung's phone manufacturing has completely relocated to countries like India and Vietnam.

Recently, there have been reports that Samsung Display has officially notified internally that it will cease production of existing China-based contract manufacturing models in the fourth quarter of this year, with subsequent supply shifting to its factory in Vietnam.

In other words, apart from smartphones, another Samsung business has left China's manufacturing industry, marking a shift in the supply chain.

Samsung Display currently no longer produces LCD screens and has fully switched to OLED and QD-OLED models. These will all be relocated.

Why did Samsung decide to move? One reason is, of course, performance. Currently, domestic screens in China have gained popularity, and the market share of domestic screens has surpassed that of Korea. China has become the world's largest producer and exporter of screens.

With Samsung no longer producing LCD screens and the advantages of OLED screens gradually diminishing, especially in the Chinese market where market share continues to decline, Samsung has decided to relocate its operations.

On the other hand, manufacturing costs in China are relatively higher compared to places like Vietnam. For large companies like Samsung, cost control is crucial, so they will naturally choose locations with lower costs for production.

So, what impact will this have on China's manufacturing industry? To be honest, the impact is not significant if we consider only Samsung. Firstly, Samsung Display's current production capacity in China is not substantial, and the number of employees affected is limited. Additionally, Samsung is known for its generous compensation, so the reaction is not expected to be severe.

Secondly, the domestic display industry in China is developing rapidly, and it should be able to quickly absorb the market share left by Samsung's exit. Therefore, the impact is not significant.

However, in the long run, this is not a good thing. After all, if Samsung phones and displays leave, it may influence other manufacturers and their businesses. Once more companies relocate, the impact will be greater.

More importantly, the strength of China's manufacturing lies in its complete upstream and downstream supply chain. When these companies move out and establish supply chains in countries like Vietnam and India, the advantages of China's manufacturing will become less apparent, resulting in significant consequences.