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Samsung's chip profits fell by 94%

- 31 July, 03:13 PM

Samsung Electronics said operating profit from its chip manufacturing unit fell 94% in the second quarter of 2025 from a year earlier. Despite stable sales, the decline was driven by significant inventory costs, Chosun reported.

The company's overall operating profit was 4.67 trillion won ($3.4 billion) for the April-June period of 2020-25, down 55.23% from the same period in 2024. Net profit fell 48% to 5.11 trillion won. Meanwhile, the company's revenue rose 0.67% to 74.56 trillion won.

Server memory sales improved in the second quarter of 2025, but semiconductor revenue fell 2%. Samsung said profits fell due to inventory write-downs. Foundry operations also performed poorly, which weighed on profits. In total, processors and memory generated 6.7 trillion won in revenue, in line with last year's figures but not reflected in profit.

Where Samsung is doing well is in its smartphones and network devices. In the second quarter, operating profit rose 40.9% to 3.1 trillion won. This growth was driven in particular by strong sales of the flagship Galaxy S25 and the popularity of mid-range models such as the Galaxy A series.

Meanwhile, the TV and other home appliance business also suffered due to fierce competition from Chinese manufacturers. Profit in this segment fell by 60% to 200 billion won. At the same time, Samsung predicts a significant improvement in results in the second half of the year in all areas, including the memory chip business.

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