Samsung’s Foundry Woes Deepen Amid US Export Controls and Semiconductor Slump

Samsung Electronics Co.'s semiconductor division delivered a starkly underwhelming performance in the June quarter, with operating profit plunging to 400 billion won ($288 million)—a fraction of the 2.73 trillion won analysts anticipated. The shortfall exposes mounting pressures at the world's largest memory chipmaker, where tightening US export controls on high-bandwidth memory (HBM) chips and foundry losses are eroding margins.

A one-time inventory write-down exacerbated the damage, compounded by weak Chinese demand and delayed shipments due to trade restrictions. Utilization rates sagged despite resilient demand for premium server memory. The 15-fold operating profit surge Samsung reported earlier this year, fueled by AI-driven semiconductor demand, now appears distant as geopolitical and market headwinds intensify.