Samsung had indeed struggled to extract profit from the chip market due to getting tough competition from other Chinese manufacturers. With entering into the new year, in spite of revamping the semiconductor factors in 2024, it seems like the company is yet to figure out things to stop the losses and low earnings.
The semiconductor business for Samsung Electronics is facing tough competition from the other Chinese chip makers that are eyeing expanding their semiconductor market, outpacing Samsung with a decline of 40% of operating profit in 2025.
According to the reports presented by the Korean news firm, the Chosun daily, Samsung Electronics faced another tough year and battles against three different key aspects, such as Chinese chip makers, US tariffs, and a policy deadlock, resulting in the operating profit decline of 40% in 2025 (as analysts showcased the forecast for Samsung).
It was further mentioned that if Samsung needs to reverse this situation, it should indeed make consumers believe that it will deliver fruitful results in manufacturing AI chips, especially high-bandwidth memory (HBM). Alternatively, it’s important that certain policies must support Samsung, like the K-Chips Act. The key factor of this huge decline is getting challenges from Chinese chip manufacturers, as they are entering into the general-purpose DRAM chip market with products costing low prices.
Another and last hanging danger for Samsung Electronics is the return of the Trump Administration. This is because the US tariff policies could lead to raising prices for Samsung’s memory chips and challenge demands for smartphones and PCs equipped with Samsung’s chips.
