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Home Finance

Samsung Chip Business Profits Plummet By Nearly 94%

But the company expects a business rebound within this half of the year.

by John Law
August 4, 2025
Samsung Galaxy Z Flip6 review
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Samsung recently posted its second quarter financial earnings and to say that the company’s profits has been abysmal may be underselling it. The Korean tech giant seemingly saw its operating profits drop by 94% since last year.

According to CNBC, Samsung’s profits from its chips business went from earning 74.6 trillion Won (~RM225 billion) last year to just 4.7 trillion Won (~RM14.32 billion) in this year. By the way, that’s even worse than the company’s performance forecast from a month ago.

Specifically, Samsung’s Device Solutions division, which is reponsible for its memory chip manufacturing, semiconductor design, and foundry operations, only recorded a quaterly operating profit of just 400 billion Won (~RM1.22 billion), down 6.45 trillion Won (~RM19.65 billion) from last year.

Revenue for the company overall also declined, from 28.56 trillion Won (~RM86.8 billion) to 27.9 trillion Won (~RM84.7 billion) during 2024.

samsung galaxy z fold7 flip7 unpacked

Samsung’s CFO, Soon-cheol Park, says that the drops in profits are due to multiple factors, including the Trump-era tariffs, plus the import restrictions on China. That said, they believe that Samsung will see a rebound within this quarter, although there is still the fear of further tariffs from the US.

It’s not all doom and gloom for the quaterly earnings, though. Samsung’s best performing sector was its mobile division, with the “robust” sales of its Galaxy S25 and current A Series, as well as its Galaxy tablets generating profits of up to 3.1 trillion won (~RM9.5 billion). Its recent launch of its foldables have also enjoyed strong sales, despite growing competition from its Chinese rivals.

ALSO READ:  Samsung Galaxy Z Flip7 All-Screen Cover Shown In One UI 8 Leak

(Source: Techspot, CNBC)

Filed Under Samsung
Updated 3:29 pm, Mon, 4 August 25
https://lowy.at/00mvb
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