Samsung Slump: Semiconductor Struggles Slash Q1 Profits

Samsung Electronics is expected to report a 21% decline in first-quarter profit this year, driven by weakening demand for AI chips and ongoing losses in its foundry operations, according to Reuters.

Citing data from January to March, Reuters reported that the South Korean tech giant’s operating profit may fall to 5.2 trillion won (approximately $3.62 billion), compared to 6.6 trillion won during the same period last year.

Samsung is currently lagging behind rival SK Hynix in supplying high-performance memory chips to major clients such as Nvidia. Analysts point out that reliance on Chinese buyers and concerns over U.S. export restrictions have further dampened demand.

Additionally, significant price drops in DRAM and NAND flash chips have further pressured the company’s profitability. Analysts also warn that U.S. tariff policies could raise production costs for Samsung’s mobile and home appliance segments, compounding financial challenges in the coming quarters.