What you need to know
- Samsung’s revenue hit $53.5B, but profits nosedived 55%, mainly due to a rough quarter for its chip division.
- Semiconductor profits fell off a cliff — from $4.6B last year to just $287M — thanks to Nvidia delays and tighter U.S. export rules.
- With Meta and Microsoft ramping up AI needs, Samsung is banking on a stronger second half.
Samsung has released its Q2 2025 results, and it’s a mixed story, with overall performance dipping, except a few segments still held their ground.
The Korean giant pulled in KRW 74.6 trillion (approximately $53.5 billion), but profits took a dive, with operating profit dropping to KRW 4.7 trillion ($3.37 billion). That’s a 55% decline compared to last quarter and almost the same year-over-year.
Samsung puts the blame mostly on its chip division, which had a rough time this quarter.
The semiconductor business was hit particularly hard, posting just KRW 400 billion in profit ($287 million). That’s a huge fall from the KRW 6.5 trillion it made a year ago. A big reason behind the decline is the delay in shipping high-bandwidth memory (HBM) chips to Nvidia, plus tightened U.S. export rules affecting chip sales to China.
AI demand from tech giants fuels Samsung’s optimism
Even with strong demand from AI and cloud companies, Samsung couldn’t quite capitalize on it this quarter the way competitors like SK Hynix and Micron have.
Still, there are signs of a rebound. Samsung expects a stronger second half, thanks to growing AI demand from big players like Meta and Microsoft. A new trade agreement between the U.S. and South Korea, which introduces a 15% chip tariff, also brings some relief and predictability.
Furthermore, Samsung is betting big on its foundry business with a $16.5 billion chip order from Tesla, which will be manufactured at its Texas plant starting in 2026.
During the earnings call, Daniel Araujo, VP of Samsung’s Mobile Experience team, also shared that the Galaxy S25 FE is arriving earlier than planned, meaning we can expect it sometime in August or early September, Android Authority reports.
Mobile and electronics keep Samsung steady amid chip slump
Looking ahead, Samsung is putting advanced chip tech front and center as it tries to narrow the performance gap in the AI space. It’s currently developing HBM-3E and HBM-4 memory, which are key components for staying relevant in the AI chip race.
Samsung’s mobile division had a solid quarter, pulling in around $2.23 billion in profit, a nearly 40% jump from last year’s $1.6 billion. The boost came from strong sales across its lineup, not just phones but also laptops, smartwatches, tablets, and even smart rings.
Even with a rough Q2 for semiconductors, Samsung found some balance in its mobile and electronics divisions. The company is betting on AI and fresh partnerships to help turn things around in the second half of 2025.
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