Samsung Electronics, South Korea, reported a 5.8% quarter-on-quarter revenue decline for Q2 2025, posting KRW 74.6 trillion, with operating profit at KRW 4.7 trillion. While the Device Solutions division saw robust AI-related memory sales, profit was pressured by inventory adjustments and export-related headwinds. The Device eXperience segment also saw weaker profits due to smartphone sales normalization. Despite these challenges, the company remains focused on AI-driven semiconductors, premium displays, and flagship mobile growth in the second half of 2025.
Samsung Electronics of South Korea has announced its financial results for the second quarter ended June 30, 2025, reporting KRW 74.6 trillion in consolidated revenue — down 5.8% from the previous quarter — and KRW 4.7 trillion in operating profit.
The Device Solutions (DS) Division, which includes the semiconductor business, saw revenue rise to KRW 27.9 trillion, driven by strong demand for high-density memory products like HBM3E and DDR5. However, operating profit was limited to KRW 0.4 trillion due to one-off inventory value adjustments and continued impact from US export restrictions on advanced chips to China.
In response, Samsung is intensifying its AI semiconductor strategy for the second half. The company plans to expand production and sales of HBM, LPDDR5x, DDR5, GDDR7, and SSD solutions to meet growing data center and AI-server demand. Additionally, its Foundry unit will ramp up mass production using the 2nm GAA process for new SoCs, targeting improved factory utilization and margin recovery.
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The System LSI segment maintained revenue from flagship chip shipments but struggled with profitability due to higher development costs. Looking ahead, Samsung aims to strengthen its Exynos lineup and sensor portfolio to win 2026 mobile design slots.
Meanwhile, the Device eXperience (DX) Division, encompassing mobile and network operations, posted KRW 29.2 trillion in revenue and KRW 3.1 trillion in operating profit. Although smartphone shipments declined sequentially, year-over-year performance improved, supported by strong Galaxy S25, Galaxy A series, and tablet sales. The company will now pivot toward high-end devices including foldables, with plans to integrate enhanced AI capabilities across the Galaxy ecosystem.
The Samsung Display Corporation (SDC) recorded KRW 6.4 trillion in revenue and KRW 0.5 trillion in operating profit, with solid momentum from mobile displays and QD-OLED monitors. In H2, SDC plans to deepen technological differentiation and expand into automotive and IT displays.
Lastly, the Visual Display and Digital Appliances segment generated KRW 14.1 trillion in revenue and KRW 0.2 trillion in operating profit. Samsung will leverage AI-enhanced Neo QLED and OLED TVs to drive sales during the seasonal demand peak, while boosting profitability through its connected services such as SmartThings and Samsung TV Plus.
Despite macroeconomic and geopolitical uncertainties, Samsung’s diversified strategy — focused on premium offerings and AI innovation — positions it for long-term resilience and growth.
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