Samsung Electronics forecasts a 15% profit drop in Q2 2025, with operating profits falling to approximately 5.5 trillion won ($4.2 billion), below analyst expectations. The decline stems primarily from semiconductor division struggles, where Samsung's HBM3E memory chips await Nvidia approval, limiting access to key AI markets. Poor yields in 3nm chip production further hinder foundry growth. The Galaxy S25 smartphone has underperformed sales targets amid deteriorating economic conditions, while increased U.S. tariffs and logistics costs negatively impact the smartphones, TVs, and appliance divisions. Securing Nvidia's approval for HBM chips is considered crucial for the company's semiconductor business recovery.