Mon. 07 Apr 2025
☀️ 2°C in Dublin
🎮 Games
Date: 07-apr-2025
Image by Xiaodong X from Pixabay
Samsung Electronics has reported an estimated 21% year-on-year decline in its operating profit for the first quarter of 2025, totaling approximately 5.2 trillion won (roughly $3.62 billion). The tech giant, a global leader in memory chips and smartphones, continues to face headwinds in its semiconductor division—particularly from sluggish AI chip sales and deepening losses in its foundry business.
Despite a global boom in artificial intelligence (AI) technologies, Samsung has been unable to fully capitalize on the demand for AI chips. The company lags behind key competitors such as Nvidia in producing high-performance chips needed for AI servers and infrastructure. This has led to missed revenue opportunities in a segment that was previously expected to drive recovery in 2025.
Samsung’s contract manufacturing unit—commonly known as its foundry business—has continued to operate at a loss. Analysts attribute this to weak order volumes and the delayed launch of its state-of-the-art U.S. chip plant, which is now expected to become operational only by 2027.
“The foundry business has been a drag on overall semiconductor earnings,” said a market analyst from Seoul. “Samsung’s capacity is underutilized, and it is facing fierce competition from TSMC.”
In addition to AI and foundry concerns, Samsung’s core memory business is also under pressure. Prices for DRAM and NAND flash memory have seen steep year-on-year declines—by as much as 25% and 50%, respectively—leading to narrower margins and reduced revenues.
In response to the profit dip, Samsung has hinted at expanding its chip R&D and diversifying its production strategies. However, market experts warn that structural changes and technological upgrades may take years to reflect in earnings.
While the global chip industry is expected to bounce back in the latter half of 2025, Samsung faces an uphill task in regaining its momentum. AI remains a key battleground, but turning around its foundry losses and improving its competitive edge will be critical to reversing the current downward trend.
Samsung’s full Q1 earnings report is due later this month and will provide more detailed insight into the challenges and opportunities facing one of the world’s most influential tech companies.
Date: 07-Apr-2025
Indian stock indices opened sharply lower as global markets reacted to U.S.-China tariff conflict. Nifty 50 and Sensex decline, IT and financial stocks hit hardest.
Date: 07-Apr-2025
Indian stock indices opened sharply lower as global markets reacted to U.S.-China tariff conflict. Nifty 50 and Sensex decline, IT and financial stocks hit hardest.
