Samsung Bets on Chips Amid U.S. Tariff and Tesla Deal

Industry Insights from Next Move Strategy Consulting

Samsung Electronics said the new trade agreement—under which the United States will impose a 15% tariff on goods imported from South Korea—actually eases uncertainty. The company also expects further large chip orders following its recent $16.5 billion contract with Elon Musk’s Tesla.

Samsung Eyes Chip Expansion Despite Weak Earnings and U.S. Tariff Deal

The Texas project plays a key role in Samsung Chairman Jay Y. Lee's plan to move beyond the company’s core memory chip operations and grow its presence in advanced contract chip manufacturing—a sector largely dominated by Taiwan.
Executive Noh made these remarks following Samsung’s report of an operating profit of 4.7 trillion won ($3.37 billion) for the April–June quarter, marking its weakest performance in six quarters. The result was roughly in line with a prior forecast that had already underwhelmed investors.

Samsung-Tesla Deal Precedes U.S.-South Korea Tariff Pact

Samsung’s agreement with Tesla this week came just days before President Donald Trump announced a long-awaited tariff deal with Washington on Wednesday, temporarily easing trade tensions with a key Asian ally and one of America’s top 10 trading partners.

Samsung Q2 2025 Financial Highlights

• Revenue Growth:

Samsung's second-quarter revenue rose by 0.7% year-on-year, reaching 74.6 trillion won, closely aligning with its earlier estimate of 74 trillion won.

• Chip Division Performance:

The semiconductor unit recorded a profit of 400 billion won, a steep decline from 6.5 trillion won in the same quarter last year.

• Six-Quarter Low:

This marks the first time in six quarters that the chip division's profit has fallen below 1 trillion won, highlighting continued pressure on the segment.

Samsung Cites U.S. Export Curbs and Inventory Adjustments for Chip Profit Decline

Samsung stated that inventory value adjustments in its memory chip segment and one-time costs related to U.S. export restrictions on sales to China impacted its contract chip manufacturing business, resulting in reduced profitability for the division.

Source: https://www.reuters.com/

Prepared by: Next Move Strategy Consulting