A major strategy shift from Samsung’s side might allow the company to post better financials in the coming quarters and pull itself out of the rubble. However, its Q2 2025 earnings saw the Korean giant’s operating profit dip by more than half, even though its revenue of 74.6 trillion won (approximately, $53.5 billion) was slightly higher than the 74.43 trillion won it posted during the same period a year ago. A closer look at these earnings reveals that Samsung’s chip business saw a jaw-dropping 94 percent drop, though its other segments have a more positive story to tell.
Chip revenue could be boosted by Samsung’s renewed focus on its 2nm GAA technology, while also partnering with Tesla
During the Q2 2025 earnings call, Samsung mentioned that its operating profit was 4.7 trillion won, which is around $3.37 billion. Unfortunately, the company missed analysts’ expectations of 5.33 trillion won, and to make matters worse, the Korean technology behemoth’s net earnings for Q2 2024 were 10.44 trillion won, recording more than half a drop. Coming to its chip business, Samsung’s operating profit plunged from 6.45 trillion won last year to a measly 400 billion won ($287 million), with revenue at 27.9 billion won ($20 billion).
Given that Samsung failed to secure any customers for its 3nm GAA process, it is unsurprising to see these results. Fortunately, the company has a brighter story to tell as far as Galaxy S25 sales go, as its mobile experience and network business recorded an operating profit of 3.1 trillion won, or $2.22 billion, up from 2.23 trillion won it generated last year. Total revenue for this business segment was 29.2 trillion won, up from 27.38 trillion won from the same period a year ago, with Samsung stating that it will continue to boost earnings and shipments through its foldable smartphone launches.
As for how the company intends to escape from the financial drought stemming from its lackluster chip business, Samsung has reportedly secured a hefty deal of a whopping $16.5 billion with Tesla for its 2nm GAA wafers. The manufacturer is currently engaged in the prototype mass production of the Exynos 2600, with one of its goals being to bring its 2nm GAA yields to 70 percent by the end of 2025. While it may take a while to stabilize the cutting-edge technology, Samsung apparently wants to go ‘toe to toe’ with TSMC, as it has completed the basic design of the second-generation 2nm GAA process and plans to implement the third-generation node, also known as SF2P+, within two years.
News Source: Samsung
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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