For any community you live in, one of the things you like to see is companies making their headquarters or making their presence in your community. Ideally, that means people need to work in the location which means people will need to live in the area buying homes, renting places and all the activity which surrounds companies expanding. This is a good thing and can make where you live more livable.
In an article by Hyunjoo Jin of Reuters, Samsung Electronics which is headquartered in South Korea, had made its headquarters in the US in Englewood Cliffs, New Jersey with other operations centered in Texas. The company has many operations and invariably one of more operations are doing very well.
All companies can locate wherever they wish to, but the odd part is Samsung Electronics America (SEA) settled into the New Jersey location less than a year ago, employing 1,200 workers. Recently SEA is downsizing 739 roles and moving operations to Plano, Texas.
Samsung’s other division is making chips and making chips has sent profits up 19 fold on strong AI-driven chip demand. Samsung in investing hundreds of billions of dollars on new chip plants.
The mobile division is expected to post its first ever loss as it grapples with competition from Apple. Chinese competition such as TCL and Hisense are challenging Samsung in TV and home appliances.
Samsung has joined other companies such as Tesla and Oracle moving to Texas known for lower taxes and business friendly environment. Samsung had 11.770 employees in the US at the end of 2025.
Linking to dividend paying stocks, while it is wonderful to get a headquarters in the area and perhaps that is one of the reasons to consider investing in the company, the reality is companies make decisions and sometimes it affects people and allocating less resources to formerly key divisions. As an investor you like the company made the tough decision, if the company was leaving the area where you are from, you have mixed feelings.
There are more questions than answers, till the next time – to raising questions.