Samsung Electronics' Q2 chip business operating profit plummeted 94% year-on-year to 400 billion won ($288 million), dropping below 1 trillion won for the first time in six quarters—exposing troubles for the world's top memory chipmaker.
Hit by shipment delays and U.S. export restrictions on China, Samsung's overall Q2 operating profit hit a six-quarter low of 4.7 trillion won ($3.37 billion). Revenue rose 0.7% to 74.6 trillion won, in line with expectations. Profit declines stemmed from memory chip inventory adjustments and one-time costs from restricted China foundry operations.
In HBM, Samsung struggled: its Q2 global market share (by bit volume) fell to 17% from over 40% in Q1 2024, overtaken by Micron to rank third, sparking concerns over its AI chip competitiveness.
Samsung expects improved industry conditions in H2, with foundry losses narrowing. A $16.5 billion Tesla deal for AI chip production at its Texas plant (2026 launch) may boost foundry business. Its mobile division stayed profitable via Galaxy S25, planning growth with new foldables.
Samsung's chip unit faces deep challenges but has H2 opportunities. ICgoodFind tracks its recovery efforts.
