Samsung Misses Profit Forecasts as Chip Division Collapses
Samsung Electronics reported its second-quarter operating profit at 4.7 trillion Korean won ($3.38 billion), falling short of analyst expectations due to a sharp 93.8% drop in chip business earnings.
Though the result slightly beat Samsung’s internal forecast of 4.6 trillion won, it represents a massive fall from 10.44 trillion won in Q2 2024. The company’s revenue climbed slightly to 74.6 trillion won, up from 74.07 trillion won a year ago.
Memory Chip Business Takes a Severe Hit
The steep decline came primarily from Samsung’s Device Solutions division, which houses its semiconductor and foundry units. The segment reported a Q2 operating profit of just 400 billion won, a major fall from 6.45 trillion won during the same quarter last year.
Revenue from chips dropped to 27.9 trillion won, compared to 28.56 trillion won in Q2 last year. Samsung attributed the dip to “inventory value adjustments” in memory and one-time costs linked to export restrictions in the non-memory segment.