Samsung’s Operating Profit Plummets 56% Amid Semiconductor Struggles

Samsung Electronics reported a staggering 56% year-on-year decline in operating profit for Q2 2025, missing analyst estimates. The tech giant's operating profit fell to 4.6 trillion won ($3.3 billion), far below the anticipated 41% drop projected by Bloomberg-polled analysts. Revenue stood at 74 trillion won.

The profit slump stems from one-time inventory costs and shipment delays of advanced memory chips, particularly impacting Samsung's crucial semiconductor division. While chip-making losses are expected to moderate in the second half of 2025, the company faces mounting pressure in the AI chip market where it lags behind competitors.

Samsung's semiconductor business, once its crown jewel, now struggles with weak global demand despite anticipated gradual recovery in sectors like AI and high-performance computing. The firm will release detailed divisional breakdowns later this month.