Samsung could set up a plant in US to manufacture home appliances – report
In November 2016, Samsung had announced to invest more than $1bn in its Austin semiconductor facility.
South Korean multinational company Samsung Electronics might build a plant in the US to manufacture home appliances, according to a latest report. This move could be seen as a possible response to President Donald Trump's criticism about imports.
However, Samsung is yet to decide on the investment amount and the location for the new base, Reuters reported.
Meanwhile, Samsung did not reveal any details and said that it has already made significant investments in the country. In November 2016, the company announced that it would invest more than $1bn (£790.76m) by the first half of 2017 in its Austin, Texas, semiconductor facility, to meet the growing demand for chipsets for use in smartphones and other electronic devices.
In a statement issued toReuters Samsung said, "We continue to evaluate new investment needs in the US that can help us best serve our customers."
The new US administration has threatened to impose an additional tax on imports and the president has urged companies to invest more in the US.
Last month, another South Korean giant – Hyundai Motor Group – said it plans to lift US investments by 50% to $3.1bn over five years.
In January LG announced it would decide on whether to build a manufacturing plant in the US within the first half of the year. LG is considering a location for a new home appliances and television plants in Tennessee.
Analysts believe plants for assembling appliances would not pose a financial burden for Samsung or LG. "Of course costs would rise, but if they don't do that they would get hit with tariffs," Jay Yoo, an analyst at Korea Investment told Reuters.
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