Samsung rushing to secure smartphone parts amid coronavirus

Samsung Electronics has placed high priority on securing smartphone parts amid the outbreak of the coronavirus, according to industry sources on Feb. 6.

The tech giant also plans to adhere to its previous plans to go ODM for about a third of its smartphones this year, but some disruption is expected as most of the ODM partners are located in China.

“Since withdrawing its smartphone plant from China’s Huizhou in 2019, Samsung Electronics has turned to countries like India and Vietnam to produce smartphones,” said one industry source close to the matter.

He added that although there isn’t any huge visible impact, if prolonged, the virus could affect the Chinese ODM suppliers of Samsung. Beijing has currently blocked transactions between different provinces and cities to prevent further contagion of the coronavirus.

Employees also are banned from returning to the workplace, meaning that some of the plants won’t be able to run as usual. The Beijing government has extended the lunar new year holidays a second time to last until Feb. 9.

Samsung officials say the firm is now searching for Korean suppliers that might have to replace the Chinese companies. “The ODM plans have been pushed back a bit due to the coronavirus situation,” said another source close to Samsung. Wingtech, one of Samsung’s key ODM partners said on Feb. 2 that the impact of the virus is limited, and that it would be receiving more supplies from its plants in India and Indonesia.

The Elec is South Korea’s No.1 tech news platform.