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Samsung eyes Vietnam plant to slash smartphone display costs

South Korean market leader considers $1bn investment, according to South Korean media

Manufacturing, IT Business, Samsung Electronics Company

Samsung Electronics is in exploratory talks with the Vietnamese government over building a factory to manufacture display components for smartphones, Reuters reported.

Global smartphone market leader Samsung is under pressure to cut costs in a bid to counter slowing growth in unit shipments, as Chinese rivals continue to bring cheaper premium models to market.

Vietnam represents a significant save in costs and South Korea's Yonhap News Agency reported Samsung's display division was contemplating spending $1bn to build the plant, which is targeted for a 2020 opening.

The global smartphone market has seen downward pressure on the average price of premium smartphones as newcomers like Huawei have made strides in hardware quality. Apple Inc has aggressively gone after a share of the Chinese market, the world's fastest growing smartphone market, in its latest product cycle.