A Samsung store in Guangzhou, China. (Photo by Yusuke Hinata)

Parts of the facility will be converted into a research and development center. Samsung plans to transfer its production to an existing factory in Vietnam. Nikkei Asian Review quoted a Samsung spokesperson as saying that the decision to shut the Chinese plant was based on the need to find a cost advantage.

Previously, Samsung ran three smartphone factories in China. However, the group shut down all production there late last year. The capacity has been transferred to Samsung's Vietnamese facilities or delegated to contract manufacturers, according to Nikkei Asian Review.