Samsung chip profits collapse as 2nm Tesla deal and Galaxy sales offer hope

Samsung reported mixed financial results for the second quarter of 2025. The South Korean technology company generated 74.6 trillion won in revenue, representing a slight increase from the previous year. Operating profits fell dramatically to 4.7 trillion won, missing analyst predictions by a significant margin.

The semiconductor division faced severe challenges, with operating profits plummeting 94 percent to 400 billion won. This decline stemmed from the company's inability to attract customers for its 3nm manufacturing process. The mobile division performed better, achieving 3.1 trillion won in operating profits compared to 2.23 trillion won during the same period last year.

Samsung plans recovery through strategic partnerships and advanced manufacturing technology. The company secured a substantial 16.5 billion dollar contract with Tesla for 2nm chip production. Management targets 70 percent manufacturing yields by late 2025 while developing the Exynos 2600 processor and competing directly with industry leader TSMC.
 

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