South Korean technology giant Samsung Electronics reported a 55.5% drop in its operating profit in the second quarter of 2025 on an annual basis. The reason for the collapse is the restrictions imposed by the US on the export of artificial intelligence chips to China.

For the April-June period, the company made an operating profit of 4.7 trillion won (about 3.4 billion US dollars) - a significant drop compared to the same period in 2024.

"Despite strong revenue growth compared to the first quarter, the Foundry division's results remained weak due to inventory value adjustments resulting from US restrictions on the export of advanced AI chips to China," Samsung said in an official statement.
The collapse comes despite the recent signing of a $16.5 billion deal with Tesla, under which Samsung will supply AI6 chips to the electric car maker until the end of 2033.

Samsung Electronics is the leading unit in the Samsung Group structure – the largest chaebol (family-run conglomerate) in South Korea, which plays a key role in the country’s economy. | BGNES, AFP