SEOUL: Samsung Electronics Co will be halting its operations at the last computer factory in China.

Companies are rethinking their production and supply chains amid rising Chinese labor costs, a U.S.-China trade war and the blow from the COVID-19 pandemic, Reuters reported.

Around half the 1,700 employees on contract at Samsung Electronics Suzhou Computer will be affected, excluding those involved in research and development, the South China Morning Post reported on Friday, citing a notice to Samsung staff.

Samsung shut its last smartphone factory in China last year. Its remaining facilities include two semiconductor manufacturing sites in Suzhou and Xi’an.

(With inputs from agencies)