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17h ago

Samsung Q2 Profits Diverge as Chip Unit Plunges and Component Arm Posts Growth

Samsung Electro-Mechanics expects rising AI demand to bolster third-quarter growth in smart device components.

A general view of the Samsung Austin Semiconductor plant on April 16, 2024 in Taylor, Texas. The U.S. has awarded Samsung $6.4 billion to support the company's chip manufacturing plant in Taylor, Texas in an effort to help further generate domestic production of semiconductors, alongside expanding Samsung's manufacturing plants.
Samsung Electronics said July 8, it expected its second quarter operating profits to drop 56%, blaming US export controls on advanced AI chips to China.
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Samsung Electronics employees check the smartphone Galaxy S25 series at a Samsung store in Seoul, South Korea, April 15, 2025.

Overview

  • Samsung Electronics’ net income fell 48 percent to 5.11 trillion won in the second quarter, missing analysts’ expectations.
  • Operating profit at Samsung Electronics dropped 55.2 percent to 4.67 trillion won as its semiconductor division logged 400 billion won, the weakest since late 2023, despite an 11 percent rise in chip sales.
  • Samsung Electro-Mechanics’ net profit declined 24.3 percent to 137.2 billion won, largely due to the stronger Korean won reducing dollar-denominated order value.
  • The component unit’s revenue increased 8.2 percent to 2.78 trillion won and operating profit edged up 0.7 percent to 213 billion won, driven by premium AI multilayer ceramic capacitors and server packaging solutions.
  • Samsung Electro-Mechanics projects continued strength in AI server and smart device component orders in the third quarter.