Samsung Electronics released its financial results for the second quarter of 2025, covering the period ending June 30. The company reported consolidated revenue of KRW 74.6 trillion, which is a decrease of 5.8% compared to the previous quarter. Operating profit was KRW 4.7 trillion.
The Device Solutions (DS) Division saw an increase in revenue due to higher sales of high-density and high-performance memory products. However, inventory value adjustments in memory and one-off costs related to export restrictions on non-memory products to China negatively affected profits. The Device eXperience (DX) Division recorded a decline in operating profit from the prior quarter as sales volume dropped following new smartphone launches earlier in the year.
Looking forward to the second half of 2025, Samsung’s DS Division aims to meet demand for high-value-added and AI-focused products while working on competitiveness in advanced semiconductors. The DX Division plans to manage uncertainties arising from ongoing tariff policies.
For Q2, the DS Division posted KRW 27.9 trillion in revenue with KRW 0.4 trillion in operating profit. In memory, strong server demand led to increased HBM3E sales and more high-density DDR5 products sold. Sales of server SSDs also grew after delayed datacenter projects resumed, which helped reduce NAND inventory significantly, though earnings were impacted by one-off costs such as inventory value adjustments.
AI-driven demand is expected to stay strong through H2 as major cloud service providers continue investing; this should support server DRAM and NAND demand. Samsung intends to address needs for high-density DRAM products—such as HBM, LPDDR5x, DDR5, GDDR7—and accelerate its transition toward newer V-NAND technology for SSDs across all uses.
The System LSI Business benefited from flagship system-on-a-chip shipments using Gate-All-Around process technology but faced limited earnings improvement due to development costs for advanced products. For H2, efforts will focus on improving Exynos competitiveness for potential adoption by a major customer’s flagship mobile lineups in 2026 and expanding sensor sales.
Foundry Business revenue rose from Q1 but earnings remained weak because of US export restrictions on advanced AI chips sent to China and low utilization at mature production nodes. Plans include ramping up mass production of new mobile SoCs with a 2nm GAA process while aiming for improved factory use rates and profitability through expanded customer sales.
Samsung Display Corporation (SDC) reported Q2 revenue at KRW 6.4 trillion with an operating profit of KRW 0.5 trillion. SDC's mobile display business grew revenues responding to new smartphones from major customers along with expanded IT and automotive segment sales; large displays saw continued growth driven by gaming monitor demand.
In H2, SDC expects further mobile display growth tied to upcoming smartphone launches despite market uncertainties and will continue developing differentiated technologies beyond smartphones while maintaining TV panel supply stability.
Mobile eXperience (MX) and Networks businesses had combined revenues of KRW 29.2 trillion with an operating profit at KRW 3.1 trillion during Q2.
Smartphone shipments fell compared with Q1’s launch-heavy period but both revenue and profit rose year-on-year thanks largely to strong Galaxy S25 series performance alongside Galaxy A series phones and tablets.
MX Business maintained double-digit profitability through resource management.
Looking ahead, MX will emphasize foldables and Galaxy S25 series smartphones while highlighting AI features on other models; it also plans expansion into extended reality devices like XR headsets and TriFold devices.
Networks Business improved profitability via overseas market growth plus cost efficiencies; next steps involve meeting revenue goals by winning new orders at optimized costs.
Visual Display & Digital Appliances divisions posted combined Q2 revenues at KRW 14.1 trillion with an operating profit at KRW 0.2 trillion.
Premium TV product sales improved but overall earnings declined amid weak demand & increased competition.
Plans call for leveraging peak seasonality via upgraded TV lineups featuring enhanced AI capabilities; additional growth targets include services like SmartThings home platform, Samsung Knox security suite, Samsung Art Store digital art platform & free streaming service Samsung TV Plus.
"Looking ahead to H2, the DS Division plans to proactively meet the growing demand for high-value-added and AI-driven products and continue to strengthen competitiveness in advanced semiconductors."
"In H2 2025, the System LSI Business will focus on improving Exynos competitiveness to ensure its adoption in 2026 flagship mobile lineups of a major customer and expanding the sales of ultra-high-resolution and nano-prism sensors."
"In H2 2025, the Foundry Business will ramp up mass production of a new mobile SoC with the 2nm GAA process."
"In H2 2025, the MX Business plans to continue a flagship-first approach for smartphone sales focusing on foldables and the Galaxy S25 series — while emphasizing the AI functionality of the Galaxy A series — to increase market share."
###