Particle.news
Download on the App Store
28 ARTICLES
·
2mo ago

Samsung’s Q2 Operating Profit Drops Over 50% as Chip Unit Falters

Samsung is relying on a US$16.5 billion Tesla foundry contract to shore up revenue following renewed US export curbs on AI chips to China.

The logo of Samsung Electronics is seen at the company's store in Seoul, South Korea, April 15, 2025. REUTERS/Kim Hong-Ji/File Photo
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.
blank
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.

Overview

  • Second-quarter operating profit tumbled to 4.7 trillion won, down from 10.44 trillion won a year earlier, while revenue rose marginally to 74.6 trillion won.
  • The semiconductor division logged a six-quarter low of 400 billion won in operating profit after inventory writedowns and US export restrictions on advanced AI chips to China.
  • Samsung’s mobile experience division delivered a 3.1 trillion won operating profit thanks to strong Galaxy S25 and A-series smartphone sales.
  • A newly disclosed US$16.5 billion contract with Tesla is set to boost Samsung’s foundry business in the coming quarters.
  • The company has finalized development of sixth-generation HBM4 memory chips with full-scale supply planned for next year and is preparing responses to a pending US Section 232 semiconductor review.