Samsung Cuts US Jobs, Shifts Focus to Texas Amid Chip Boom

Samsung is cutting hundreds of jobs in the United States and offering affected employees relocation opportunities as part of a strategic shift to Texas. The move comes as the company benefits from surging demand for AI chips, which has driven record profits in its semiconductor division. However, rising component costs are squeezing margins in its consumer electronics units, including smartphones and TVs, forcing a restructuring of its US workforce. The layoffs primarily affect positions in areas not aligned with Samsung's growing semiconductor operations. Employees in California and other locations are being offered transfers to Texas, where the company is expanding its chip production facilities. Samsung is investing billions in a new semiconductor plant in Taylor, Texas, which is expected to create thousands of jobs in the long term. Analysts note that the job cuts reflect a broader trend in the tech industry, where companies are reallocating resources toward high-growth areas like artificial intelligence and advanced chips. Samsung's chip division has seen strong demand for memory chips used in AI servers, while its phone and TV businesses face tougher competition and higher costs. Despite the layoffs, Samsung remains one of the largest foreign investors in the US. The company said it is committed to supporting affected employees through the transition. The restructuring is part of Samsung's long-term strategy to strengthen its position in the AI and semiconductor market.