Samsung's Second Quarter Operating Profit Experiences a Decrease of Over 50%
Samsung Secures Major Foundry Order from Global Company
Samsung Electronics has landed a significant foundry order worth 22.76 trillion won ($19.19 billion USD) from a large global company, marking a significant milestone in Samsung's efforts to expand its foundry business. The identity of the company remains undisclosed.
This foundry order is part of a larger trend of increased demand for advanced semiconductor manufacturing services. It is expected to be fulfilled at Samsung's foundry facility in Hwaseong, South Korea, and is poised to contribute to Samsung's financial performance in the coming quarters.
The news of this foundry order follows Samsung Foundry's $16.5 billion contract with Tesla, further emphasizing Samsung's strength and competitiveness in the global semiconductor industry. This latest order is the latest in a series of major contracts secured by Samsung Foundry, indicating a positive outlook for the company's foundry business.
Samsung Electronics' current status shows a mixed picture of operational challenges and ongoing investments. The company reported a sharp drop in operating profit for Q2 2025, largely due to sluggish performance in its semiconductor division and foundry losses. While overall sales increased slightly, the semiconductor business saw significant profit declines.
Despite these challenges, Samsung is making significant strides in its semiconductor manufacturing capabilities. The company is accelerating progress on its chip fabrication plant in Taylor, Texas, which is expected to start full-scale operations next year. Samsung has also finalized its sixth-generation HBM (HBM4) chips, starting sample shipments to major clients, aiming for increased supply next year.
The Kospi index has responded positively to this news, increasing for four consecutive days due in part to gains in Samsung. The Samsung Electronics office building remains in Seocho District, southern Seoul, where the company continues to maintain its headquarters.
Interestingly, SK hynix has dethroned Samsung as the most desirable place to work, according to a recent survey. This shift in employee preference may indicate a changing landscape in the semiconductor industry, but Samsung's continued success in securing major foundry orders suggests that the company remains a strong contender in the global market.
As Samsung chief Lee Jae-yong heads to the U.S. to support tariff talks, the company is closely watching geopolitical and trade developments, such as the US-Korea tariff negotiations and the US Department of Commerce’s review of semiconductor tariffs, with outcomes expected in mid-August.
In addition, Samsung C&T, part of Samsung Group involved in construction, was ranked first in construction capability evaluations for 2025, marking 12 consecutive years at the top. This strong position in the construction sector could be relevant to any ongoing or future projects, including its office facilities.
In conclusion, Samsung Electronics is navigating operational challenges while making significant investments in new manufacturing facilities and technologies. The foundry order from the large global company is a testament to Samsung's competitiveness in the global semiconductor industry and is expected to significantly boost Samsung's foundry business.
- The foundry order secured by Samsung Electronics from a global company signifies a significant boost in the finance and economy of the technology industry, especially for Samsung's foundry business.
- The lucrative foundry contract Samsung Foundry secured from a global company demonstrates Samsung's growth and competitive edge in the semiconductor industry, where finance, technology, and business intersect.
- With this latest foundry order from a global company, Samsung Electronics is solidifying its position in the global finance, technology, and semiconductor industry, continuing to contribute to the industry's advancement.
- As Samsung Electronics augments its foundry business through major contracts like the one from a global company, various sectors like business, finance, technology, and the economy are set to experience the positive effects of this growth.
