Samsung Electronics to invest $7 billion to boost China NAND chip output


Samsung has slimmed its portfolio of phones in China to focus on the mid-range and high-end segment of the market. Some smartphone makers have opted to create a China-specific product, but this is.

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I. Introduction

SEOUL (Reuters) - Samsung Electronics Co Ltd expects to invest $7 billion over the next three years to expand its NAND memory chip production in China’s northwestern city of Xi’an, the South.

They say Samsung's decision to open a production facility in the country will help it tap into the growing market and maintain an edge over its competitors. Theresa May warns of "uncharted territory" if MPs reject her agreement as she insists crunch vote will "definitely" go ahead next week. Samsung won government approval to build the plant earlier this year. More on this story. Samsung gets China plant approval.

Samsung risks following Sony and IBM's slide. Samsung buys out Sony LCD venture. Top Stories Brexit 'in danger' unless MPs back deal - PM Theresa May warns of "uncharted territory" if MPs reject her agreement as she insists crunch vote will "definitely" go ahead next week.

Elsewhere on the BBC. The Greatest Dancer Learn this simple Beyonce dance move. Daily news briefing direct to your inbox Sign up for our newsletter. Almost every factory had other regulations that were unfair or simply cruel. Lack of any effective complaint mechanisms. Even when they suffered unfair treatment, workers at almost factory lacked any effective channel by which to express grievances to management.

All factories in this investigation mistreat labor in one way or another, but generally speaking, those factories directly owned and operated by Samsung are, in some aspects, less egregious violators than the supplier factories that Samsung pays to produce its products. As an example, the chart below compares a factory completely owned by Samsung, SSDP, and a supplier factory, Intops, based on information and estimates collected during our investigations.

The above chart clearly demonstrates that although the SSDP factory is still plagued with issues—e. It clearly has the wherewithal to systematically improve labor conditions for its network of factories and supplier factories in China. Below are some of the steps Samsung can take in both its majority-owned and supplier factories:. By establishing this channel of communication between the factory and workers, worker grievances can be clearly expressed and potentially rectified.

Of course, workers should be free from factory reprisals and be able to maintain their anonymity if so desired. The factory also benefits from a hotline because the expectations of more workers can be met and employee turnover will reduce.

Third party actors, such as NGOs, can act as mediators of labor disputes by giving workers a direct channel by which to contact these NGOs and express their grievances. In turn, these NGOs can then communicate the grievances to the factory and discuss potential solutions. Redundant internal corporate social responsibility CSR audits lack independence and are mired in corruption. Samsung should reduce these audits and replace them with regular independent third party audits. NGOs, which have no conflict of interest in working with Samsung, should be able to freely conduct CSR audits in factories, strengthening oversight and improving labor conditions.

Management—particularly low-level management on the factory floor—should be provided with communication and human resource management training. Without these essential skills, the verbal and physical abuse in factory workshops will persist.

Samsung can organize discussion events which bring in representatives for the workers at a given factory, for that factory, for Samsung itself, and for any other corporation that does business with that factory.

Round-table events should allow all sides to hold open discussions on factory rules, labor treatment, and other issues relevant to workers. These events should emphasize equality among the various parties, ensuring that there are an equal or greater number of worker representatives as corporate and factory representatives.

Worker representatives should be directly chosen by the workers themselves. Samsung should publish a list of all supplier factories as well as put the names of these factories on its products. This way, Samsung's manufacturing operations will be fully transparent.

Not one factory in this investigation had a legitimate union. Samsung should allow the right to worker-organized, worker-operated, and worker-led unions in all of its directly-owned and supplier factories. Of course, all union leadership and representatives should be chosen by the workers that union represents. And all unions should have to right to collective bargaining.

The long list of abuses discussed in this report demands an immediate effort by Samsung to rectify current illegal and unfair treatment. But in order to prevent transgressions in the future, Samsung should also improve the entire system, as is detailed above. By nature of its size and extensive utilization of Chinese labor, Samsung can change the way that the electronics industry treats manufacturing workers.

CLW calls on Samsung to begin at once. Footages of the workers and factories. Download the detailed pdf report. Students work for up to a year and then are required to return to their schools. There are no hiring or health check fees. There is a male to female ration of 3: There are both male and female dormitories provided. During hiring interviews, the HR department often chooses not to interview males.

Dormitories are only provided for females. The factory, school, and students sign a joint contract; however, student workers expressed that they do not receive a copy. The factory requires workers to sign a contract in which specific items are left blank.

The workers are also not given a copy. This has led to many workers in the factory not knowing whether or not they are formal employees of the factory. Before beginning work, workers attend a full week of training in which full wages are provided. Absolutely no formal training for new workers. Instead, workers just learn from a veteran worker or team leader on the production line the first day. Workers must come into the factory ten minutes before clocking in for a meeting but are not paid for the time.

The first day of work is unpaid. Every day, workers are required to enter the workshop 20 minutes early for a meeting but are unpaid for the time. When production orders are low, workers average about 32 hours of overtime per month. When orders are high, no more than hours. During non-peak seasons, workers average around hours of overtime per month. During peak seasons, about hours.

Everyone must stand while working. One worker of two months reported that the speed of production is so fast that she has never had a chance to drink water while working.

Everyone stands while working.