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 Electronics has projected a sharp 56% decline in its second-quarter operating profit, citing weak AI chip sales and intensifying US restrictions on advanced chip exports to China. The profit warning has sparked renewed concerns over the South Korean tech giant’s ability to turn around its struggling semiconductor division.

Samsung is also facing broader geopolitical pressure, as US President Donald Trump threatens new 25% tariffs on South Korean exports. Trump has urged firms like Samsung and Apple to shift production to the US, part of a broader trade strategy that Seoul is closely monitoring to avoid further economic strain.