Samsung Electronics will close down its mobile phone factory in Tianjin, China, due to slumping sales and rising labor costs, the Economic Daily News reported on December 31, 2018. The company confirmed that the operation would cease on December 31, 2018. Other than Tianjin, Samsung has another mobile phone factory in Huizhou, Guangdong. Meanwhile, as smartphone demand in India surges, Samsung announced in July 2018 that it has increased investment in India, the world’s second largest mobile phone market, by expanding production of its manufacturing facility in Noida. This India factory will eventually have the capacity to assemble 120 million smartphones a year with an aim to compete with Xiaomi, currently the first in India.