Samsung Electronics Faces Significant Profit Drop

Samsung Electronics has reported a staggering 55.2% drop in operating profit for the second quarter of 2025, amounting to 4.7 trillion won ($3.37 billion), compared to the same period last year.

Revenue and Semiconductor Division Performance

Despite a slight revenue increase of 0.7% to 74.6 trillion won ($53.5 billion), the company's semiconductor division experienced a dramatic 94% decrease in operating profit, down to 400 billion won ($288 million) from 6.5 trillion won the previous year.

The division's revenue was reported at 27.9 trillion won. "Despite significant growth in revenue from the first quarter, earnings for the Foundry Business remained weak," Samsung stated, attributing the downturn to US export restrictions on advanced AI chips to China and low utilization rates at mature nodes.

Strategic Moves Amid Challenges

This financial update follows Tesla CEO Elon Musk's confirmation of a $16.5 billion chip supply deal with Samsung, highlighting the tech giant's pivotal role in the global semiconductor industry despite current hurdles.