[News] Samsung Q2 Profits Reportedly Dive to Six-Quarter Low; 2H Revival Faces Tariff Challenges

Samsung’s struggles with HBM3E verification for NVIDIA continue to weigh on its performance, offering no lift to its second-quarter results. According to Yonhap and the Chosun Daily, Samsung’s Q2 operating profit plunged nearly 56% to 4.6 trillion won—well below analysts’ expectations of 6 trillion won. Reuters highlights that this is Samsung’s weakest quarterly profit in six quarters.

Though a turnaround in 2H is expected, a report from Techstrong.IT, citing analyst, warns that the 25% tariff Trump just announced on Japan and South Korea could have a notable impact on companies like Sony and Samsung. For Samsung, if its chips aren’t exempted from these tariffs or upcoming Section 232 measures, the company could face heavy cost pressures and supply chain disruptions—especially in its key DRAM and NAND businesses, the report adds.

Quick Recap on Samsung’s Q2 Results

As Reuters notes, Samsung’s Q2 shortfall was partly due to U.S. export restrictions on advanced AI chips to China, but also reflected internal setbacks—especially delays in delivering HBM chips to major client NVIDIA.

The Chosun Daily also reports that Samsung’s foundry business stayed in the red in Q2, weighed down by weak client demand. Analysts cited in the report estimate that the semiconductor division’s operating profit fell below 1 trillion won, largely due to inventory write-downs. Samsung likely recorded the cost of unsold inventory as a precautionary measure to prepare for potential risks in the second half, the report suggests.

Samsung’s Q2 revenue was 7.4 trillion won, down 0.1% year-on-year, while a detailed earnings report will follow later this month, Reuters notes.

Turnaround in 2H?

However, the Chosun Daily flags that despite a rough second quarter, the outlook for the second half is turning more optimistic for Samsung. Samsung could secure NVIDIA’s certification for its HBM chips as early as Q3 and has already begun supplying HBM to Broadcom and AWS—setting the stage for stronger sales ahead, the report says.

According to the Chosun Daily, Samsung’s DRAM profitability is expected to improve as demand shifts from lower-margin DDR4 to the more profitable DDR5. At the same time, its mobile division is reportedly gearing up to expand its market share, with the upcoming launch of the Galaxy Fold 7 and Galaxy Z Flip 7 on July 9.

Read more

• [News] Samsung Reportedly Bets on 4–7nm with 30% Price Gap over TSMC, Eyeing Markets China Hasn’t Entered
• [News] Samsung Nears Qualcomm 2nm Deal as Foundry Recovery Gains Momentum

(Photo credit: Samsung)