Samsung is shutting down the production of its in-house proprietary CPU cores. The Korean tech giant will no longer be producing its self developed Mongoose CPU cores and will instead turn to ARM for Cortex cores.

The custom CPU department in Austin, Texas will be shut down and around 300 employees will be dismissed as part of the layoff. The shut down is expected to come in effect on December 31

Michele Glaze, a spokesperson from Samsung commented on the matter saying:

There will be no impact on 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’s representatives have also said that this decision was taken in order to keep Exynos chips competitive against the likes of Qualcomm and Hisilicon.

For clarification, Samsung’s in-house Exynos chipsets are not going anywhere. They will continue to exist and will simply be using ARM’s Cortex CPUs instead of Mongoose CPU cores.

The Galaxy S11 is expected to come with both, the Exynos and Snapdragon SoCs. The company is also partnering up with AMD for its Radeon powered GPUs for future Samsung devices including smartphones.