Samsung Electronics on Tuesday projected a far worse than expected 56% plunge in second-quarter operating profit due to weak AI chip sales, deepening investor concerns over the tech giant's ability to revive its struggling semiconductor business.

Samsung forecasts a 55.9 per cent fall in Q2 profit due to weak chip demand, US trade curbs, and inventory costs. Q3 recovery expected with higher HBM demand and improved foundry utilisation.

Samsung Electronics reports a 56% drop in operating income for Q2, marking its first profit decline since 2023 due to challenges in the memory chip market.