Samsung is undergoing a significant strategic pivot, potentially setting the stage for improved financial performance in upcoming quarters. Despite a slight revenue increase to 74.6 trillion won (around $53.5 billion) in Q2 2025, the company faced a striking drop in operating profit, plunging more than 50% compared to the previous year. A deep dive into these earnings reveals a severe setback in Samsung’s chip business, which plummeted by an astonishing 94%. However, brighter prospects emerge from other divisions.
In a bold move to rejuvenate its chip sector, Samsung is focusing on cutting-edge 2nm GAA technology and has forged a pivotal partnership with Tesla. During their Q2 2025 earnings call, Samsung reported an operating profit of 4.7 trillion won ($3.37 billion), falling short of analysts’ predictions. The chip division’s operating profit nosedived from 6.45 trillion won last year to a mere 400 billion won ($287 million), with revenues declining to 27.9 billion won ($20 billion).
The decline was anticipated due to Samsung’s struggles in securing clients for its 3nm GAA process. Nevertheless, the tech giant has seen a positive trend in Galaxy S25 sales, with its mobile experience and network segment reporting an impressive 3.1 trillion won ($2.22 billion) in operating profit, a rise from 2.23 trillion won the previous year. This segment amassed total revenue of 29.2 trillion won, surpassing the 27.38 trillion won from the prior year. Samsung plans to further boost this growth with its innovative foldable smartphone releases.
Addressing the challenges posed by its struggling chip division, Samsung has reportedly landed a substantial $16.5 billion deal with Tesla for its 2nm GAA wafers. The company is actively working on prototype mass production of the Exynos 2600, aiming to elevate its 2nm GAA yield to 70% by the end of 2025. Although stabilizing this advanced technology may take time, Samsung is gearing up to compete fiercely with industry leader TSMC. The company has finalized the basic design of its second-generation 2nm GAA process and is setting sights on deploying the third-generation node, known as SF2P+, within two years.
