Samsung Electronics Co. will close its PC manufacturing plant in Suzhou, China, company officials here said Monday, as the company tries to boost efficiency in its supply chain management.

Suzhou Samsung Electronics Computer Co. will halt production of PCs and focus on research and development (R&D), a Samsung spokesman here confirmed.

Chinese media have reported that Samsung’s latest decision is likely to affect around half of the 1700 workers at the plant.

Samsung said the closure of its PC plant is part of its efforts to improve efficiency at its production bases worldwide amid fierce competition in the industry.

Samsung’s Suzhou PC plant became operational in 2002 and has been producing desktop and laptop computers.

The latest move also follows Samsung closing its handset manufacturing facilities in China in the last two years.

Samsung runs other production facilities in Suzhou, including its affiliate Samsung Display Co.’s LCD plant.

However, the company’s LCD plant is likely to be put up for sale as it seeks to end production of LCD panels by the end of this year in its transition to the next-generation quantum-dot (QD) display.