Samsung Electronics Q2 Profit Drops 56% Amid US Chip Export Curbs

Samsung Electronics reported a steep 56% decline in its second-quarter operating profit, largely attributed to U.S. export restrictions on advanced AI chips to China and delays in supplying high-bandwidth memory (HBM) chips to major customers like Nvidia. The company’s operating profit was estimated at approximately 4.6 trillion won ($3.4 billion), significantly below analyst expectations and marking its weakest quarterly profit in six quarters, while revenue remained nearly flat at 74 trillion won. Samsung's memory chip segment, particularly HBM products, faced challenges including quality concerns and increased competition from rivals such as SK Hynix, Micron, and Chinese firms. Despite these setbacks, Samsung expects a gradual recovery in demand and improved sales of premium memory chips in the upcoming quarters, with its non-memory divisions, including the foundry segment, projected to reduce losses. Experts noted that the impact of President Donald Trump's tariff policies and ongoing global trade tensions have increased macroeconomic uncertainties affecting Samsung's performance. The company has also announced a substantial share buyback program to bolster investor confidence amid these challenges.