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Samsung to shut down its custom CPU division and layoff 290 employees | Report

04 November 2019 0

There are only a few contenders in the CPU market, with Qualcomm being the first name that comes to anyone’s mind followed by other companies. Samsung, Apple, and Huawei have been developing in-house processors for their products but there is one name in the competition which will soon stop making its custom cores.

We are talking about Samsung which is reportedly shutting down its Central Processing Unit project at its Austin research and development facility and hence it will lay off nearly 300 workers as well. As a result, Samsung will stop making its custom cores used in Exynos chips. The report comes from a Worker Adjustment and Retraining (WARN) letter filed with the Texas Workforce Commission. It is expected that Samsung will now rely on ARM’s cores for performance-related tasks.

Samsung license IP from ARM Holdings and this allows the South Korean giant to create its custom cores like Samsung’s Exynos. The same goes for Qualcomm as well while others like MediaTek license the design of the chips themselves.

The layoffs will be effective as of December 31 and Samsung Austin manufacturing facility, company spokesperson Michele Glaze states the decision has been made post-assessment of the business,

“There will be no impact to the Samsung Austin Semiconductor manufacturing facility. We have treated all employees with respect. They all have been given appropriate packages, and advanced notice. These things are very tough. People always wonder, ‘did they treat them right?’ And we did. It’s unfortunate that they are losing their jobs, but it is based upon the fact that we’re always assessing our business.”

Samsung is reportedly also closing its CPU facility in San Jose, California, However, it is unknown how many jobs are affected there.


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Samsung to shut down its custom CPU division and layoff 290 employees | Report
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