Latest news with #TomHsu
Qatar Tribune
08-07-2025
- Business
- Qatar Tribune
Samsung flags sharp fall in Q2 profits on United States chip woes
Agencies Samsung Electronics said Tuesday it anticipated a drop of over 50% in its second-quarter operating profits, citing U.S. export restrictions on advanced AI chips to China as the main reason. The firm is the flagship subsidiary of South Korean giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia's fourth-largest economy. The tech giant said in a regulatory filing that its April-June operating profits were expected to drop to 4.6 trillion won ($3.3 billion) – down 56% from a year earlier and 31% from the previous quarter. The figure was 23.4% lower than the average estimate, according to South Korea's Yonhap news agency, which cited its own financial data firm. Sales were estimated at 74 trillion won, down 0.1% from a year earlier and 6.5% from the previous quarter. The company did not disclose its net income or the detailed earnings of its business divisions. In a separate release, the company explained why the results 'fell short of market expectations.' The company's key semiconductors division 'recorded a quarter-on-quarter decline in profit due to inventory value adjustments and the impact of U.S. restrictions on advanced AI chips for China,' it said. Washington has expanded efforts to prevent Beijing from getting state-of-the-art chips over concerns that they could be used to advance the country's military systems and other tech capabilities. The restrictions mean the company's high-tech factories were running well below capacity. However, Samsung projected that in the second half of the year it would trim operating losses 'as utilization improves due to a gradual recovery in demand.' Shares in Samsung were down around 0.8% in Seoul on Tuesday. The sharp profit and revenue drop is attributed 'primarily to the weak foundry business, while the performance of the memory business stayed relatively stable,' Tom Hsu, an analyst at TrendForce, told Agence France-Presse (AFP). The outlook for the next quarter is more optimistic, with 'memory chip prices and shipments to keep rising, thanks to strong demand,' especially from data centers, added Hsu, including for AI. Performance from the company's HBM chips – used for advanced AI computing – 'likely fell short of expectations,' said Chae Min-sook, an analyst at Korea Investment and Securities.
Kuwait Times
08-07-2025
- Business
- Kuwait Times
Samsung expects steep drop in profits on US chip woes
SEOUL: Samsung Electronics said Tuesday it expected its second quarter operating profits to fall by more than half, blaming US export controls on advanced AI chips to China. The firm is the flagship subsidiary of South Korean giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia's fourth-largest economy. The tech giant said in a regulatory filing that its April-June operating profits were expected to drop to 4.6 trillion won ($3.3 billion) - down 56 percent from a year earlier and 31 percent from the previous quarter. The figure was 23.4 percent lower than the average estimate, according to South Korea's Yonhap news agency, which cited its own financial data firm. Sales were estimated at 74 trillion won, down 0.1 percent from a year earlier and 6.5 percent from the previous quarter. The company did not disclose its net income or the detailed earnings of its business divisions. In a separate release, the company explained why the results 'fell short of market expectations'. The company's key semiconductors division 'recorded a quarter-on-quarter decline in profit due to inventory value adjustments and the impact of US restrictions on advanced AI chips for China', it said. Washington has expanded efforts to prevent Beijing getting state-of-the-art chips over concerns that they could be used to advance the country's military systems and other tech capabilities. The restrictions mean the company's high-tech factories were running well below capacity. However, Samsung projected that in the second half of the year it would trim operating losses 'as utilization improves due to a gradual recovery in demand'. Shares in Samsung were down around 0.8 percent in Seoul on Tuesday. The sharp profit and revenue drop is attributed 'primarily to the weak foundry business, while the performance of the memory business stayed relatively stable', Tom Hsu, an analyst at TrendForce told AFP. The outlook for the next quarter is more optimistic, with 'memory chip prices and shipments to keep rising, thanks to strong demand', especially from data centres, added Hsu, including for AI. Performance from the company's HBM chips — used for advanced AI computing — 'likely fell short of expectations', said Chae Min-sook, an analyst at Korea Investment and Securities. In addition, a price drop for its NAND — used for data storage — 'likely widened losses slightly', Chae added. 'The sharp decline in the won-dollar exchange rate since June will likely weigh on both sales and operating profit (for the second quarter),' she added. Samsung is among the smartphone makers under pressure from US President Donald Trump, who has threatened South Korea with 25 percent tariffs in a letter to Seoul on Monday. Trump has repeatedly demanded that global companies — including Samsung and rival Apple — relocate production to the United States, which many experts warn is unrealistic, citing complex Asia-based supply chains. South Korea has already been hit by levies on steel and car exports, and said Tuesday it was maintaining 'close communication' with the Trump administration as it sought to head off additional measures. — AFP
Time of India
08-07-2025
- Business
- Time of India
Samsung earnings slump: Profit may tumble 56% in Q2; AI chip curbs and foundry woes bite
Representative image Samsung Electronics expects its second-quarter operating profit to plunge by more than half, as US export restrictions on advanced AI chips to China and underperforming foundry operations weigh on the tech giant's earnings. In a regulatory filing on Tuesday, the company projected April–June profits of 4.6 trillion won ($3.3 billion), marking a steep 56 per cent decline from the same period last year and a 31 per cent drop from the previous quarter. The figure also fell significantly below market forecasts, coming in 23.4 per cent lower than the average estimate, reported AFP, citing South Korea's Yonhap news agency. Sales for the quarter are expected to hit 74 trillion won, barely changed from last year, but down 6.5 per cent from Q1. While the company did not reveal net income or a segment-wise breakdown, it attributed the underwhelming performance primarily to its chip division. 'Profit fell quarter-on-quarter due to inventory value adjustments and the impact of US restrictions on advanced AI chips for China,' Samsung said in a separate release. Washington has intensified curbs on exporting cutting-edge semiconductor technology to Beijing, citing concerns over their potential military applications. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An engineer reveals: One simple trick to get internet without a subscription Techno Mag Learn More Undo These restrictions have left Samsung's high-tech chip facilities underutilised, pushing down profitability. Analysts also highlighted a broader slowdown in Samsung's foundry business. 'The sharp profit and revenue drop is attributed primarily to the weak foundry business, while the performance of the memory business stayed relatively stable,' Tom Hsu of TrendForce was quoted as saying by AFP. Despite the slump, Samsung offered a more optimistic outlook for the latter half of 2025. The firm expects to narrow losses as factory utilisation improves and demand recovers. "Memory chip prices and shipments are expected to rise, thanks to strong demand from AI and data centres," Hsu added. Still, performance from Samsung's prized HBM (high-bandwidth memory) chips — crucial for advanced AI processing — underwhelmed in the June quarter. 'HBM likely fell short of expectations,' said Chae Min-sook of Korea Investment and Securities, adding that falling NAND flash prices for data storage likely widened losses further, as per AFP. Chae also noted that the weakening Korean won against the dollar in June may have dented both sales and operating profit. The company's woes come amid mounting trade tensions with the United States. US President Donald Trump has warned Seoul of 25 per cent tariffs and demanded global tech firms, including Samsung and Apple, shift manufacturing to the US. South Korea, already facing levies on steel and autos, said it is maintaining 'close communication' with Washington to avoid fresh duties. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
