according to the website - By Cryptopolitan_News

Samsung Electronics reported a 56% year-on-year decline in operating profit for the second quarter of 2025, marking the first drop in a year.

The South Korean tech giant announced an operating profit of 4.6 trillion won, or about $3.3 billion, which was below market expectations. Analysts surveyed by Bloomberg had expected a less severe decline - about 41%. Quarterly revenue totaled 74 trillion won.
The profit decline was attributed to several factors. The tech firm blamed one-time expenses related to inventory and delays in completing shipments of its most advanced memory chips. These issues impacted its semiconductor division, the company's key profit center.

The company's chip business has also faced difficulties for much of the past year, but the company stated that operating losses are expected to be lower in the second half of the year. Growth is also linked to a long-term gradual recovery in global demand for semiconductors, including for AI and high-performance computing.

The company intends to publish a full profit and loss report at the end of this month, with all net profit figures accompanied by a detailed breakdown by business units.

Samsung is lagging in the AI chip race
Samsung's most challenging task at the moment is its inefficient business in the booming artificial intelligence chip market. The company is catching up to its largest domestic competitor, SK Hynix, which significantly outpaces Samsung in the production of high-bandwidth memory (HBM) chips.

These are very important chips for AI hardware systems, especially for companies like Nvidia, which control a large portion of the AI training and inference chip market. Samsung had hoped to win large contracts from Nvidia for its latest chip - the 12-layer HBM3E - but has yet to receive final quality certification.

In contrast, SK Hynix announced a few days ago that it began early deliveries of 1.8V 12-layer HBM4 memory samples to customers. This turnaround has positioned SK Hynix among Nvidia's preferred suppliers, giving it a huge advantage in the AI memory competitive space. American supplier Micron Technology also succeeded in sending HBM samples in June.
Analysts say that shifting this timeline could have long-term consequences. A note from Bernstein and analyst Mark Li reduced Samsung's projected share in the HBM market. They now expect SK Hynix to have about 57% of the HBM market in 2025, while Samsung will have 27%, and Micron 16%.

Samsung prepares for a rebound in the second half of the year
Nevertheless, Samsung is optimistic. The company has begun supplying key customers, including Nvidia, with top HBM3E samples, nicknamed Superman, in the hope that production will finally begin if the final stages of certification are passed. The tech firm also stated that it plans to start mass production of HBM4 chips, the next generation of high-bandwidth memory, in the second half of 2025.

At the annual shareholders' meeting in March, Samsung's semiconductor business president, Jung Yeon-hyun, acknowledged that the company had failed to secure early leadership in the HBM market. He promised that this would not happen with HBM4, which will play a prominent role in the architecture of Nvidia's next-generation Rubin graphics processors.

Although certification delays remain an issue, analysts expressed optimism that Samsung will be able to catch up. In a June report, Daishin Securities analyst Ryu Hyun-kyung stated that while Samsung's certification process for the 12-layer HBM3E memory took longer than expected, the company seems to be on track for a powerful rollout of HBM4 in the third quarter of 2025.

Samsung is making a big bet on this rise. The company's long-term strategy is to reduce its dependence on consumer electronics and smartphones for sales and focus more on advanced memory chips, AI infrastructure, and foundry services. If it can overcome its current difficulties and execute its HBM4 roadmap, it could once again become competitive in the ruthless battle for leadership in the AI chip market.

But for now, SK Hynix is undoubtedly in the lead - a position that Samsung is fiercely fighting for.

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