Samsung Electronics Co Ltd said on Tuesday it will shut down a CPU research division at one of its U.S. facilities, a move that analysts said dimmed prospects for the tech giant’s Exynos-branded mobile chips.
Exynos mobile processor chips are considered a hallmark of the South Korean firm’s attempts to reduce its reliance on memory chips and increase sales of logic chips that are used to power mobile devices and autonomous vehicles.
But the proprietary chips, which are found in Samsung’s flagship Galaxy series smartphones and compete against Qualcomm Inc’s marquee mobile processors, have struggled to find external customers.
The decision to shut down the division, which will make some 300 jobs redundant, point to challenges Samsung faces in promoting Exynos chips, analysts said.
Samsung said it has more than 20,000 employees in the United States focussed on design, research and development, investment and manufacturing next-generation technologies, adding it remained committed to increasing its American workforce.