Samsung’s Second-Quarter Profit Slumps Amid Chip Supply Setbacks
Samsung Electronics is projected to report a 39% decline in its second-quarter operating profit year-on-year, falling to 6.3 trillion won ($4.62 billion), according to Reuters. The downturn is primarily attributed to delays in supplying advanced memory chips to Nvidia.
Despite being the world's largest memory chip manufacturer, Samsung continues to lag behind competitors in the production of high-bandwidth memory (HBM) chips. Progress has been slow in qualifying its 12-layer HBM3E chips for Nvidia, a key client in the AI hardware space.
However, the company has reportedly begun supplying the new HBM chips to AMD as of June. Meanwhile, Samsung expects smartphone sales to remain steady through the period.
The South Korean tech giant also faces growing uncertainties due to potential changes in U.S. trade policies and tariffs, further clouding its financial outlook.
