Samsung's Q2 Profit Drops 56% Amid AI Chip Delays

Samsung Electronics reported a 56% drop in Q2 operating profit to 4.6 trillion won ($3.3 billion), citing setbacks in AI chip advancements, particularly the delayed certification of its 12-layer HBM3E chip. Competitors SK Hynix and Micron Technology have capitalized on this delay, with Samsung's chip division projected to report a Q2 operating profit of 2.7 trillion won, lower than last year's 6.5 trillion won. Samsung's inability to obtain early certification from NVIDIA leaves it at a disadvantage in market share competition, with Bernstein forecasting SK Hynix to lead the market by 2025.

Samsung Electronics reported a 56% drop in Q2 operating profit to 4.6 trillion won ($3.3 billion), citing setbacks in AI chip advancements, particularly the delayed certification of its 12-layer HBM3E chip. Competitors SK Hynix and Micron Technology have capitalized on this delay, with Samsung's chip division projected to report a Q2 operating profit of 2.7 trillion won, lower than last year's 6.5 trillion won. Samsung's inability to obtain early certification from NVIDIA leaves it at a disadvantage in market share competition, with Bernstein forecasting SK Hynix to lead the market by 2025.

The decline in operating profit is attributed to ongoing operating losses in the foundry business, while the high-margin HBM business remains muted. Samsung's struggles in meeting AI chip demand, particularly from key clients like NVIDIA, have significantly impacted its financial performance. Delays in certification processes and export restrictions to China have further complicated Samsung's ability to supply advanced memory chips to its clients.

Samsung has responded to these challenges by restructuring its organizational focus on AI chip development and investing heavily in research and development. The company is also exploring strategies to diversify its supply chain and navigate global trade policies to mitigate the impact of these challenges.

The effectiveness of Samsung's strategic measures will determine its ability to regain its position in the semiconductor industry. Stakeholders will be closely monitoring the company's progress in the coming quarters to assess its recovery trajectory.

References
[1] https://divmagic.com/blog/samsung-electronics-faces-39percent-profit-decline-in-q2-2025-amid-ai-chip-challenges-31mdk5
[2] https://www.cnbc.com/2025/07/08/samsung-projects-second-quarter-profits-drop-56-percent-struggles-ai-demand-nvidia-sk-hynix-micron.html
[3] https://www.koreaherald.com/article/10526477