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© jultud dreamstime.com Electronics Production | November 30, 2012

Samsung's secret: inhouse production

With more than 40% of its products being produced in China, Samsung keeps production inhouse at its own plants, and with less than 10% of total production being outsourced.

Samsung Electronics Co will keep the majority of its manufacturing inhouse but assured once again to improve working conditions at its suppliers after acknowledging excessive overtime and fines for workers in China, reports Reuters. While most companies outsource their manufacturing, Samsung defends its inhouse strategy, calling it a main strength of the company. Even if it is more expensive than outsourcing, the report continues. "Samsung manufactures more than 90 percent of our products internally and only relies on contractors for peripheral products such as components, feature phones and handset cases.", said Mok Jangkyun to Reuters. According to Mok this allows Samsung to quickly adapt to changes within the market. Mok Jangkyun led a team of over 100 auditors to inspect Samsung's 105 suppliers in China.
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