Business News

Samsung's planned major investment in US production reportedly influenced by Trump election

Samsung to invest in US home appliance production -DJ

Samsung is planning to invest around $300 million in expanding U.S. production facilities after President Donald Trump's rhetoric around American jobs, according to the Wall Street Journal Wednesday, citing sources.

The company will also shift some production of oven ranges to the U.S. from Mexico, the Journal said, citing people familiar with the matter. It could create around 500 jobs, the people added.

Talks are ongoing and no final decisions have been made, with a start date for oven-range production still undetermined, the people told the Journal.

A Samsung representative told CNBC Thursday morning Asia time that the company was in "preliminary discussions related to opening a new manufacturing facility in the U.S. for home appliances." The electronics giant began reviewing manufacturing operations early last fall, the representative said.

The representative added that no final decisions have been made yet. "This is a complex process that, like all strategic business decisions, will not be made final until it is determined through proper due diligence and planning that is is the best option for Samsung."

Trump has frequently lashed out at U.S. companies for moving operations and jobs to countries such as Mexico. Trump called for a 35-percent border tax on American businesses that move jobs abroad and import products back into the U.S. market.

"I certainly support a form of tax on the border," he told Reuters last month. "What is going to happen is companies are going to come back here, they're going to build their factories and they're going to create a lot of jobs and there's no tax."

Last month, Treasury Secretary Steven Mnuchin told CNBC the Trump administration aimed to formulate a tax plan with support from the Republican-controlled House of Representatives and Senate and pass it before August.

— CNBC's Chery Kang and Reuters contributed to this report.