Samsung Electronics to End Major U.S. Logic-Chip Project

   By Kwanwoo Jun 
 

Samsung Electronics Co. (005930.SE), the world's largest memory-chip maker, said Tuesday it will halt a major processing-chip development project in the U.S.

The termination of a central-processing-unit core development project at U.S. research and development units would make some 300 jobs redundant there by the year's end, Samsung said.

Samsung's project was aimed at developing its own logic chips, called Exynos, to compete with rival chipmaker Qualcomm.

"Based upon a thorough assessment of our System LSI business and the need to stay competitive in the global market, Samsung has decided to transition part of our U.S.-based R&D teams in Austin and San Jose," Samsung said in a statement.

The statement did not detail its arrangements for the affected employees, but said: "Samsung remains committed to supporting and growing our American workforce that are an integral part of the company's success" though the project is set to end.

Samsung officials said the affected staff could be relocated to other positions within the company, which employs over 2,000 employees in the U.S.

Samsung has recently ramped up investment in developing logic chips after decades of relying heavily on the memory-chip business.

Write to Kwanwoo Jun at [e-mail]

(END) Dow Jones Newswires

November 05, 2019 04:43 ET (09:43 GMT)

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