Samsung Apologizes for Missing Profit Expectations Amid AI Chip Challenges

The tech giant faces increasing competition and delays in high-bandwidth memory chip production, impacting its financial performance.

Samsung reported a third-quarter operating profit of 9.1 trillion won ($6.78 billion), which is a 274% increase from last year but falls short of analyst expectations.
The company issued a rare apology for its performance, citing concerns about its technological competitiveness and the future of its chip business.
Delays in the production and shipment of high-bandwidth memory chips, crucial for AI applications, have allowed competitors like SK Hynix to gain ground.
Samsung's foundry business is struggling with poor yields and competition, yet the company denies any plans to spin off this division despite significant losses.
Shares of Samsung have fallen significantly this year, with the company planning workforce adjustments in response to its ongoing challenges.