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Samsung to place more component orders with Taiwan suppliers

Aaron Lee, Taipei; Joseph Tsai, DIGITIMES [Thursday 3 October 2013]

Samsung Electronics is reportedly planning to increase its orders to Taiwan-based component suppliers, especially metal chassis orders, according to sources from the upstream supply chain.

Samsung's components needs are mostly fulfilled by in-house production lines, but it lacks its own metal chassis capacity, the sources said, adding that related Taiwan-based makers are expected to start shipping components to the Korea-based vendor as early as the end of 2013.

Samsung had previously outsourced some of its notebook production to Compal Electronics, but the partnership has already ended due to weaker-than-expected notebook sales. Currently, Samsung is making all of its notebooks internally.

In addition to chassis, Taiwan-based hinge maker Shin Zu Shing (SZS) is reportedly also a major supplier for Samsung, and 50% of Samsung's notebooks use SZS's hinges. SZS declined to comment on speculation about its orders.

Meanwhile, Samsung is said to be unveiling its new high-end Galaxy F series smartphones, featuring an 8-core processor, a 16-megapixle camera and metal chassis.The sources believe the vendor will need support from Taiwan makers for the chassis.

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