Asia-Pacific stock markets saw mixed movements as investors tracked U.S.-Ukraine talks and assessed global growth prospects. Gains in Japan, China, India, and Hong Kong were offset by declines in South Korea and weak export data from Singapore.

Asia-Pacific markets opened the week on a mixed note Monday, as investors closely watched developments from the planned talks between the U.S. President and Ukraine, while digesting regional data and shifting global trends.

In Japan, the Nikkei 225 surged 0.96% and the Topix rose 0.7%, supported by strength in large-cap exporters and renewed buying momentum. Analysts noted that the weaker yen continues to offer tailwinds to Japanese equities.

South Korea’s Kospi fell 1.17%, with tech-heavy shares leading declines, while the Kosdaq slipped 1.78%. Market experts highlighted concerns about slower global semiconductor demand weighing on investor sentiment.

Also Read: Oil Falls as Critical US-Ukraine Talks Set to Begin

In China, the CSI 300 gained 1.5%, reaching its highest level since October 2024, signaling renewed investor confidence in domestic stimulus measures. The Shanghai Composite also advanced 0.76%.

Hong Kong’s Hang Seng Index rose 0.62%, supported by financials and property stocks.

India’s Nifty 50 climbed 1.35% and the BSE Sensex added 0.89%, reflecting strong domestic inflows into equities as investors bet on continued corporate earnings growth.

Meanwhile, Australia’s S&P/ASX 200 briefly touched an intra-day high of 8,960 before closing up 0.11%, aided by mining and energy stocks.

In Singapore, however, non-oil domestic exports fell 4.6% year-on-year in July, sharper than expectations. Economists pointed to weakening global demand as a challenge for Singapore’s export-driven economy.

On Wall Street, S&P 500 futures edged higher on hopes of U.S. rate cuts, keeping Asian investors cautiously optimistic.

Financial analysts noted that Asia-Pacific markets are balancing optimism from domestic drivers—such as earnings and policy support—against risks from global geopolitics and slowing trade. Equity trends in the coming weeks may hinge on central bank signals and further clarity from U.S.-Ukraine talks.

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Samsung Electronics leads the global smartphone market in Q2 2025 with a 7.9% shipment increase to 58 million units and nearly 20% market share, amid modest global growth of 1.0% and economic challenges.

Samsung strengthens its position as the global smartphone leader with a 7.9% rise in shipments, reaching 58 million units in Q2 2025, capturing nearly 20% of the worldwide market share. Despite a challenging economic landscape marked by inflation, tariffs, and currency fluctuations, global smartphone shipments grew marginally by 1.0% year-on-year to 295.2 million units, signaling cautious optimism within the industry.

The Chinese smartphone market, traditionally a critical growth driver, showed signs of slowdown during the quarter. Promotions around the 618 e-commerce festival primarily served to clear existing inventory rather than boost fresh shipments, leading to a 1% decline in Apple’s shipments within China. Nevertheless, Apple maintained a solid global presence with a 1.5% increase in shipments worldwide, totaling 46.4 million units and securing a 15.7% market share.

Also Read: Samsung Q2 2025 Earnings: Key Takeaways for Investors

Other major players exhibited mixed performances: Xiaomi shipped 42.5 million units, holding 14.4% market share; Vivo increased shipments by 4.8% to 27.1 million units; while Transsion experienced a slight decline of 1.7%, shipping 25.1 million units. Smaller vendors faced more significant challenges, with the remainder of the market contracting by 3.1%.

Industry experts note that despite geopolitical tensions, tariff uncertainties, and economic headwinds, the smartphone market has shown resilience, marking its eighth consecutive quarter of growth—a momentum unseen since 2013. The introduction of innovative smartphone models integrating advanced AI capabilities has been instrumental in sustaining consumer interest and driving market expansion, reflecting an adaptive industry focused on technology-driven differentiation amid global economic uncertainty.

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Read the full article here: Navigating Challenges, Samsung Captures a Fifth of the Global Market — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

Asian markets saw modest gains as investors weighed key economic data, lithium sector supply shifts, and oil price declines, while tariff extension talks between the US and China remain in focus.

Asian stock markets opened the week with measured optimism, with gains led by select sectors despite ongoing caution among investors ahead of key global economic data. Markets in Australia advanced, while South Korea traded in a narrow range.

The lithium sector saw notable strength as Contemporary Amperex Technology Co. Ltd. temporarily halted production at one of its major mines in China’s Jiangxi province for at least three months, a decision expected to ease oversupply concerns. This suspension supported sentiment in lithium-related stocks, countering broader market hesitation.

Oil prices extended their recent downturn, with Brent crude hovering near $66 per barrel and West Texas Intermediate above $63. This marks the seventh decline in eight sessions, driven by expectations of increased supply ahead of planned talks between the US and Russia. The discussions, alongside geopolitical developments, are being closely monitored for potential implications on global energy flows and pricing.

Gold futures in New York remained stable as traders awaited clarity on US tariff policies, with particular attention on whether the August 12 deadline for US-China trade negotiations would be extended. The prevailing market consensus points toward a likely 90-day extension, which could provide temporary relief to export-dependent industries.

Technology shares are also under scrutiny following reports of increased regulatory and licensing requirements affecting chip exports to China. These developments are shaping sentiment in the semiconductor space, with companies like Nvidia Corp. and Advanced Micro Devices Inc. remaining in focus.

Also Read: Markets Today: Asia Slips on Tariff, Inflation, and Rate Path Jitters

From a macroeconomic perspective, investor attention is centered on upcoming US inflation data, which could influence the Federal Reserve’s interest rate trajectory. Persistent stagflation risks — characterized by slow economic growth coupled with elevated inflation — may compel the central bank to maintain higher interest rates for longer, potentially pressuring both equity and bond markets.

In China, upcoming retail sales and industrial production figures will offer further insight into domestic demand trends, particularly after recent price data signaled ongoing fragility in consumption. Meanwhile, in Australia, the Reserve Bank of Australia is widely expected to ease policy at its next meeting, though officials are likely to maintain a cautious tone regarding future moves.

With geopolitical negotiations, monetary policy decisions, and sector-specific developments converging this week, market participants are positioning cautiously, balancing short-term trading opportunities with the potential for heightened volatility.

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U.S. President Donald Trump’s sweeping tariffs take effect, impacting trade with over 60 countries. Economists warn of a slowdown as key indicators point to rising inflation and stalled hiring. Nations like India and Switzerland express concerns over disrupted exports, while the U.S. stock market remains resilient.

As President Donald Trump’s sweeping new import taxes went into effect Thursday, concerns are mounting over how these broad tariffs could undermine the already fragile U.S. economy.

Goods from over 60 countries are now subject to tariffs ranging from 10% to 100%. Among them, the European Union, Japan, and South Korea face 15% duties, while Taiwan, Vietnam, and Bangladesh are taxed at 20%. India faces an unprecedented 50% rate, following penalties over oil trade with Russia. Swiss goods, including pharmaceuticals and electronics, are now subject to a 39% tariff.

The Trump administration has framed these tariffs as a long-term rebalancing strategy to bring manufacturing back to U.S. soil. But early signs suggest the move could pose significant risks to domestic economic growth, wage stability, and consumer demand.

U.S. Economic Signals Flash Warning

In the months leading up to these measures, key indicators have started to soften. Hiring in industrial sectors has slowed. Inflationary pressures are building, particularly for imported goods. Residential real estate markets in key regions have begun to cool. And despite record-high tariff collections claimed by Trump, experts argue the revenue comes at the cost of reduced business productivity. “A less productive economy requires fewer workers,” says experts. “And with higher prices, real wages decline. The long-term outcome is stagnation.”

This sentiment is echoed across multiple sectors. Higher input costs could push manufacturers to cut back operations, delaying investment plans or even freezing hiring altogether. For U.S. consumers, that means thinner wallets and pricier everyday goods.

Also Read: Indian Exporters Hit Hard as U.S. Retailers Abruptly Halt Orders

Manufacturing at Risk: A Costly Rebalancing Act

While Trump insists these tariffs will spark an industrial renaissance, the reality for many U.S. manufacturers is more complicated. The global supply chain remains deeply interlinked. Tariffs on semiconductors, for example, have already raised costs for American electronics and auto firms.

Construction spending has also declined 2.9% year-over-year, a sign that capital investment — a key driver of long-term economic growth — may be stalling. The higher cost of imported raw materials plays a role in this slowdown.

Importers, aware of the looming hikes, had front-loaded their shipments in earlier months. This temporarily inflated trade volumes, but the underlying U.S. trade deficit still ballooned 38% higher in the first half of 2025 compared to 2024 — undermining the very purpose of the tariff regime.

Stock Market Resilient — For Now

Despite economic headwinds, equity markets have remained strong. The S&P 500 has rallied more than 25% from its April low, buoyed by July’s tax cuts and investor optimism. But experts caution against reading too much into these gains. “Markets may seem numb to tariff news, but the real economic effects will play out over time,” warned one financial strategist.

Wall Street may be bullish for now, but Main Street is bracing for uncertainty. Small businesses that rely on imported goods are already feeling the squeeze. Retailers may be forced to pass price hikes onto consumers just as household purchasing power declines.

Legal Clouds and Political Stakes

Trump’s decision to impose tariffs under a rarely used 1977 economic emergency law is now under legal challenge. Critics argue this sets a dangerous precedent, allowing tariffs to be wielded as political tools without congressional oversight.

Even some within the president’s own party have voiced concern over the unpredictability of the policy direction, warning it could chill investment and send mixed signals to global trade partners.

Still, the White House remains confident. With the president forecasting an “unprecedented” economic boom, the administration believes the short-term pain will lead to long-term gains.

Conclusion: U.S. Market Faces a Pivotal Moment

As the latest round of tariffs take hold, the U.S. economy stands at a crossroads. The gamble: that higher import taxes will ultimately reignite domestic manufacturing and create high-wage jobs. The risk: that the rising cost of goods, sluggish hiring, and weakening consumer demand may set the stage for a broader market downturn.

The coming months will be crucial in revealing whether the U.S. can weather this self-inflicted storm — or whether Trump’s tariff push will become a case study in economic overreach.

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Read the full article here: Trump’s Tariff Surge Targets Foreign Goods – But U.S. Market May Pay the Price — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

South Korean stock market wrapped up the week on a positive note, despite a dip on Friday due to profit-taking. The benchmark KOSPI posted its best weekly gain in a month as easing concerns over US tariffs provided market relief.

South Korea’s stock market ended the week on a stronger note, buoyed by reduced concerns over US tariffs, even as the benchmark KOSPI index slipped on Friday due to profit-taking.

The KOSPI closed down 17.67 points or 0.55% at 3,210.01 on Friday, following weak cues from overnight US markets. However, the index posted a 2.9% weekly gain, its biggest since early July, recovering from a 2.4% decline the previous week.

Analysts observed that the pullback on Friday was largely due to investors securing recent profits, particularly in sectors that saw sharp gains earlier in the week. Despite the daily decline, the overall market sentiment remained positive thanks to improved clarity on US-South Korea trade relations.

The reduction in US tariffs on South Korean imports, from a proposed 25% to an implemented 15%, has eased pressure on policymakers ahead of the country’s upcoming central bank meeting. This clarity has lent stability to the local financial markets and provided breathing room for monetary decisions.

In sectoral performance, Samsung Electronics led the gains among heavyweight stocks with a 1.84% rise, while SK Hynix dropped 2.10%, reflecting mixed performance in the chipmaking space. Battery major LG Energy Solution fell by 2.07%.

Automotive stocks like Hyundai Motor and Kia Corp remained relatively flat, while POSCO Holdings and Samsung BioLogics saw minor losses of 0.67% and 0.68% respectively.

Also Read: Japan’s Stocks Surge on Tariff Relief and Strong Tech Earnings

Foreign investors were net sellers, offloading stocks worth 157.2 billion won, signaling a cautious outlook amid broader market gains. Out of 935 stocks traded, 386 advanced while 488 declined, indicating some consolidation.

In currency markets, the South Korean won weakened slightly, closing at 1,389.6 per USD, down 0.26% from the previous session. The modest depreciation reflects ongoing volatility in global currency flows, particularly as the US dollar continues to strengthen.

Meanwhile, in the bond market, the benchmark 10-year government bond yield edged up 0.8 basis points to 2.775%, while the three-year yield held steady at 2.409%. September futures on three-year treasury bonds slipped by 0.03 point to 107.43, suggesting cautious sentiment in fixed income.

Overall, the easing of trade friction with the US has injected optimism into South Korea’s equity markets, with analysts watching for monetary policy signals later this month. The trajectory of foreign inflows and global macroeconomic developments will remain key drivers in the coming sessions.

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 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.

Also Read: Tesla and Samsung Sign $16.5 Billion Semiconductor Deal for Next-Gen AI Chips

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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South Korea’s LG Energy Solution has signed a landmark battery supply deal worth $4.3 billion, set to run through 2030. Though the customer remains unnamed, the long-term contract strengthens LGES’s foothold in the lithium iron phosphate (LFP) battery market. The strategic deal, likely linked to LGES’s new Michigan plant, signals rising demand in the U.S. energy storage sector and reflects a broader industry shift towards diversified and localized supply chains.

LG Energy Solution has entered into a $4.3 billion battery supply agreement with an undisclosed corporation, marking one of its largest lithium iron phosphate (LFP) battery contracts to date. The deal will span from July 30, 2024, until the end of July 2030, with provisions to extend it by up to seven years.

The South Korea-based battery maker revealed the agreement in a filing with the Korea Exchange, citing confidentiality as the reason for withholding the counterparty’s identity. The contract became effective upon order receipt on Tuesday, underscoring immediate operational execution.

While LG Energy Solution did not specify the batteries’ end use, the deal is likely tied to energy storage systems (ESS), considering the company’s ramp-up of LFP battery production in the United States. The value of the contract notably exceeds LGES’s Q2 revenue of $4.05 billion, reinforcing its strategic growth trajectory.

Also Read: Carrier, Samsung, LG Sue India Over ‘Unfair’ E-Waste Fees

The agreement is expected to support operations at LGES’s newly launched Michigan-based ESS manufacturing hub, its first in North America. The company is also developing a separate LFP battery plant in Arizona, both part of its broader strategy to localize production and serve the American market more efficiently.

In its filing, LG Energy Solution cautioned investors that the contract terms — including the total value and period — are subject to modification, emphasizing the importance of due diligence in investment decisions. Its shares rose modestly by 0.26% following the announcement.

Financial analysts see this deal as a pivotal milestone that could help LGES close the gap with dominant Chinese battery manufacturers in the LFP segment, particularly within the U.S. energy storage market. The transaction positions LGES to take advantage of rising global demand for LFP batteries due to their cost-effectiveness, safety profile, and longer lifecycle for stationary storage applications.

This deal further illustrates LG Energy Solution’s commitment to building long-term supply chain resilience, optimizing cost structures, and aligning with evolving regulatory and market dynamics in key international regions — especially the U.S.

With the global energy storage market projected to grow exponentially over the next decade, LGES’s latest contract not only enhances its revenue visibility but also marks a turning point in its competitive stance against regional and global rivals.

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The Bank of Korea, headquartered in Seoul, South Korea, held its key policy rate at 2.5% as it evaluates the impact of recent government interventions targeting an overheated housing market. Despite economic contraction and international tariff threats, the central bank emphasized financial stability over aggressive monetary easing. The decision reflects growing concerns over soaring household debt and the capital misallocation caused by Korea’s unique rental system, “jeonse.”

The Bank of Korea, South Korea’s central monetary authority, kept its benchmark interest rate unchanged at 2.5% on July 11, as it monitors the effects of recent regulatory moves aimed at curbing housing price inflation and mounting household debt in the capital city of Seoul.

According to the central bank, Seoul witnessed a dramatic 19% year-on-year increase in housing prices in June, based on data from Goldman Sachs. This rapid escalation has prompted South Korean financial regulators to roll out new restrictions on mortgage lending in an effort to cool the market and prevent wider economic imbalances.

The central bank’s decision follows a rate cut in May when the country was grappling with both domestic political uncertainties and looming U.S. tariff threats on steel and auto exports. Despite a 0.2% contraction in South Korea’s GDP in Q1 of 2025, the bank chose stability over stimulus, citing a need to rein in household debt and housing-related financial risks.

“Financial stability is a core mandate for the Bank of Korea,” Governor Rhee Chang Yong stated, emphasizing that the bank is prioritizing macroeconomic balance over short-term growth pressures. According to the BOK, the housing market and its surrounding regions, which were showing signs of overheating, are now showing preliminary signs of stabilization due to recent policy actions.

The unique jeonse system in South Korea — a rental model where tenants pay large lump-sum deposits instead of monthly rent — has contributed to excessive borrowing, further complicating the debt landscape. This system, while offering benefits to landlords, has burdened households with large loans, often leading to a misallocation of capital away from productive sectors.

In May alone, household loans surged by 6 trillion won (approximately USD 4.27 billion), with estimates for June touching 7 trillion won. This spike in debt is seen as a major risk factor by the central bank.

Although the BOK held back from making another rate cut, market analysts expect reductions in upcoming policy meetings in August and November, depending on the effectiveness of current macroprudential policies and inflation trends.

Meanwhile, South Korea faces additional economic pressure as U.S. President Donald Trump has threatened to impose 25% tariffs on all South Korean imports by August 1, should a bilateral trade agreement not be reached. This looming trade action adds further complexity to South Korea’s monetary and fiscal policy planning.

The country’s financial markets responded moderately to the rate decision. The KOSPI index rose 0.74%, and the won strengthened slightly to 1,372.48 per U.S. dollar.

As the Bank of Korea continues to assess the unfolding economic risks, all eyes remain on Seoul’s real estate market and the central bank’s future moves to balance debt, inflation, and growth.

Read the full article here: Bank of Korea Stands Tall Amid Economic Tremors — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

On July 8, 2025, U.S. President Donald Trump announced new steep tariffs on imports from 14 countries, effective August 1, citing trade deficits and transshipping concerns. The tariffs range from 25% to 40%, and include countries such as Japan, South Korea, and Bangladesh. The announcement follows a previously paused “reciprocal tariff” policy and has stirred global market reactions and diplomatic uncertainty.

U.S. President Donald Trump has announced new steep tariffs on imports from at least 14 countries, citing efforts to correct persistent U.S. trade deficits and to discourage transshipping practices. The tariffs will take effect from August 1, 2025, following the expiration of a 90-day pause initiated in April.

The announcement was made via Truth Social, where President Trump posted signed letters to foreign leaders, informing them of the new tariff rates. Among the affected countries are Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos, and Myanmar—all of which will now face import tariffs ranging from 25% to 40%.

Also included are Bosnia and Herzegovina, Tunisia, Indonesia, Bangladesh, Serbia, Cambodia, and Thailand.

According to the letters, 25% tariffs will be imposed on goods from Japan, South Korea, Malaysia, Kazakhstan, and Tunisia. South Africa and Bosnia will face 30% tariffs, Indonesia 32%, Bangladesh and Serbia 35%, Cambodia and Thailand 36%, and Laos and Myanmar the highest at 40%.

The letters also warned that retaliatory tariffs would result in an additional increase. “If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 25% that we charge,” one letter read.

This marks a return to the “reciprocal tariff” strategy Trump originally launched on April 2, 2025, before announcing a 90-day pause on April 9 amid global market volatility. During that pause, all countries were charged a uniform 10% tariff.

The new announcement also follows a federal district court ruling in May 2025, which found Trump lacked legal authority under emergency powers to impose broad tariffs. The Trump administration has since appealed, and the tariffs remain in effect pending review by the U.S. Court of Appeals for the Federal Circuit.

In a statement, White House Press Secretary Karoline Leavitt said additional tariff letters would be sent to more countries in the coming days. Later in the day, President Trump signed an executive order delaying the implementation date to August 1 based on “additional information and recommendations from senior officials.”

The Office of the United States Trade Representative (USTR), which manages trade policy and data, reported large trade deficits with countries like Japan (USD 68.5 billion) and South Korea (USD 66 billion) in 2024, while countries like Myanmar had far smaller deficits.

U.S. financial markets reacted negatively to the announcement. On July 8, the Dow Jones Industrial Average dropped 422.17 points (0.94%) to close at 44,406.36, the S&P 500 fell 0.79% to 6,229.98, and the Nasdaq Composite slid 0.92% to end at 20,412.52.

These blanket tariffs are separate from existing sector-specific duties and include new penalties for goods suspected of transshipping—i.e., routed through a third country to avoid tariffs. Trump reiterated that all rates are subject to change “depending on our relationship with your Country.”

As negotiations continue globally, Trump’s trade strategy has drawn both support from protectionist circles and criticism from economists who dispute the effectiveness of tariffs in reducing trade deficits.

Read the full article here: 14 Countries. One Tariff Policy. What Is Trump’s Next Move? — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

South Korea-based Samsung Electronics reported that its Q2 2025 operating profit is expected to decline by 56% year-over-year due to challenges in its chip and foundry segments, delayed AI chip certification, and subdued demand. Despite ongoing efforts to supply HBM chips for AI processors, delays with Nvidia’s qualification continue to weigh heavily on performance.

Samsung Electronics Co., Ltd., a global leader in memory chips and smartphones headquartered in Suwon, Gyeonggi Province, South Korea, has announced a significant decline in its Q2 2025 operating profit. The company expects to post an operating profit of approximately 4.6 trillion won (USD 3.36 billion), a 56% decrease compared to the 10.44 trillion won reported in Q2 2024.

This projection falls well short of LSEG SmartEstimate’s forecast of 6.26 trillion won (USD 4.57 billion). Revenue for the quarter is expected to hit 74 trillion won, also below LSEG’s estimate of 75.55 trillion won.

In a regulatory filing, Samsung Electronics, which is one of the world’s largest semiconductor manufacturers, attributed the decline to ongoing inventory value adjustments and the impact of U.S. restrictions on the export of advanced AI chips to China. The company also faces increasing competition in the high-bandwidth memory (HBM) segment—critical for AI processing—from rivals SK Hynix and Micron.

Samsung has been working to get the latest version of its HBM chips certified by AI chip leader Nvidia, which currently dominates approximately 70% of global HBM demand. However, recent reports suggest the certification may not be completed until at least September, limiting Samsung’s short-term growth potential in the AI space.

Although Samsung has reportedly secured HBM supply deals with AMD, the timing of production ramps means those contributions are unlikely to reflect in Q2 results.

Further compounding its challenges, the company’s chip foundry business continues to experience sluggish order volumes and heightened competition from Taiwan Semiconductor Manufacturing Company (TSMC).

In September last year, Reuters reported that Samsung directed its global subsidiaries to reduce staff in certain divisions by 30%, signaling deeper restructuring efforts.

Despite current pressures, Samsung Electronics’ stock has climbed over 16% year-to-date, according to LSEG data. The company plans to release its detailed Q2 financial results later this month.

Read the full article here: Samsung’s Foundry and HBM Setbacks Hit Q2 Earnings Hard — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).