Samsung has released its financial report for the second quarter of 2025. The company’s operating profit fell by over 50 percent compared to the same period last year, falling to approximately $3.37 billion. This development is directly attributable to the weak performance of its semiconductor division.

Samsung’s Revenue Declines

While chip production remains one of Samsung’s largest revenue streams, operating profit in this division fell to $287 million this year. This represents a decline of approximately 94 percent. On the revenue side, the company generated approximately $53.5 billion. While this figure represents a modest year-over-year increase, its impact on net profit was limited.

This sharp decline in the semiconductor division was driven by Samsung’s inability to find sufficient customers for its 3nm GAA technology and its slower progress in high-bandwidth memory (HBM) products compared to competitors such as TSMC and SK Hynix. Furthermore, the ongoing US chip restrictions on China continue to restrict export opportunities and order volumes.

Samsung’s $16.5 billion agreement with Tesla and the commencement of prototype production on the 2nm GAA process for its Exynos 2600 processor are among the promising developments. However, analysts warn that such projects will have limited impact on profitability in the short term.

The company aims to achieve 70% efficiency in 2nm production, and the design of its third-generation 2nm process, called SF2P+, has been completed. This new production technology is planned to be implemented within two years.

The only positive segment in the financial report was the mobile experience and networking unit. Operating profit in this segment rose to 3.1 trillion won (approximately $2.22 billion), while total revenue was reported as 29.2 trillion won. The sales performance of the Galaxy S25 series and the popularity of its new foldable models were particularly decisive in this result. The company is expected to maintain its momentum in this segment.

Looking at the overall picture, Samsung faces a challenging financial period throughout 2025. The company’s semiconductor recovery will depend on the commercialization of new manufacturing technologies and political and technological developments in global markets.

While the Tesla agreement and 2nm investments are important for the future, the current quarter’s results indicate a significant decline in the company’s short-term financial situation.