Samsung Electronics has reported a steep decline in its operating profit for the second quarter of 2025, highlighting persistent challenges facing both the company and the wider global technology landscape. The South Korean technology leader posted an operating profit of 4.6 trillion won (approximately $3.34 billion), representing a 55.94% drop compared to the same period a year earlier and falling below market expectations[1].
The earnings miss was largely attributed to continued weakness in the Device Solutions (DS) division, which includes Samsung’s vital semiconductor operations. The company’s regulatory filings identified one-off costs, including inventory valuation provisions, as primary contributors to the profit slump. U.S. export controls on advanced artificial intelligence chips bound for China have also impacted the division’s performance[1].
This latest result marks the lowest second-quarter performance Samsung has posted in two years. The semiconductor and memory sectors continue to bear the brunt of global supply chain challenges and trade restrictions, amplifying the financial headwinds facing the company. Guidance for consolidated sales was between 73 trillion and 75 trillion won, with operating profit projected between 4.5 trillion and 4.7 trillion won, underscoring the ongoing volatility[2][3].
Analysts are monitoring whether Samsung’s semiconductor and chipset businesses can bounce back amid evolving global demand and shifting regulatory environments. The outcome of these efforts is likely to play a decisive role in shaping the company’s financial trajectory in the coming quarters.
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