Samsung to Close Slovakia TV Factory, Its 'European Production Base,' in May... Accelerates Operational Efficiency

Prolonged Stagnation in Global TV Market Growth
Pursuing Business Efficiency and Regional Realignment
Record-High Operating Losses in TV Division

Samsung Electronics has decided to close its Slovakia factory, one of its key TV production bases in Europe, after 24 years of operation.

According to industry sources on March 20, Samsung Electronics has finalized the closure of its TV factory in Galanta, Slovakia, and has begun the related procedures. The factory is scheduled to cease operations completely in May, and the company plans to implement reemployment support measures for approximately 700 employees.

The Galanta factory has been producing TVs for the European market since its establishment in 2002. This decision is interpreted as an operational efficiency measure, reflecting ongoing stagnation in the global TV market, intensifying competition, and rising local production costs.

In the fourth quarter of last year, the DA (Digital Appliances) and VD (Visual Display) divisions of Samsung Electronics reported sales of 14.8 trillion won and an operating loss of 600 billion won.

While sales increased slightly compared to the previous quarter (13.9 trillion won), the operating loss expanded from 100 billion won to approximately 500 billion won, marking a record high.

On an annual basis, the company posted a loss of 200 billion won, and a similar level of deficit is expected to continue this year.

According to market research firm Counterpoint Research, Samsung Electronics maintained its global No. 1 position last year with a 15% market share. However, in December of the same year, it fell to second place behind TCL, as competition from Chinese companies intensified further.

Samsung Electronics is facing increased cost burdens due to rising prices of memory and components, as well as significantly higher energy costs in Slovakia, leading to substantial operational pressure.

In response, Samsung Electronics is accelerating efforts to streamline TV business operations, including a reorganization of its global production bases. The company plans to adjust production volumes in line with regional demand and strengthen its competitiveness by expanding the application of micro RGB (red, green, blue) technology in premium product lines and mini LED (light-emitting diode) technology in value product lines as part of a product portfolio overhaul.

This content was produced with the assistance of AI translation services.