Analysts Forecast Samsung’s Operating Profit to Fall by $30 Billion Amid Concerns Over Lack of Clear Strategy for 2025

Samsung is making strategic moves to recover its quarterly financial performance and enhance its competitiveness against TSMC. In recent reports, the company has notably reduced its workforce in the semiconductor division, which previously employed 438 individuals. Despite these efforts, market analysts remain doubtful about Samsung’s prospects for 2025, citing the absence of a well-defined strategy as a significant concern. The company faces considerable challenges in its foundry business, particularly in attracting new clients for its 3nm Gate-All-Around (GAA) process. Consequently, experts predict a staggering $30 billion decline in Samsung’s operating profit.

Revised Profit Projections for Samsung in 2025

As highlighted by The Chosun Daily, Samsung’s revised operating profit for 2025 is estimated at approximately 40.48 trillion Korean won, equivalent to around $30 billion. This figure marks a significant reduction from the previous estimate of 63.59 trillion Korean won (around $47.7 billion) projected in August 2024, reflecting an alarming nearly 40 percent drop.

Competitive Pressures and Market Challenges

The competitive landscape is further complicated by the influx of inexpensive DRAM products from Chinese manufacturers, intensifying pressure on Samsung. The company struggles to keep pace with soaring demands for Artificial Intelligence (AI) solutions while grappling with yield issues related to its 3nm GAA technology. In a notable setback, Samsung has lost Qualcomm as a client, with reports indicating that Qualcomm will exclusively source the production of its Snapdragon 8 Elite Gen 2 chipset from TSMC’s 3nm ‘N3P’ process.

Potential Impact of Political Changes on Pricing

Looking ahead, potential changes in U.S. trade policy could exacerbate Samsung’s predicament. With Donald Trump back in office, revised tariff strategies may lead to increased prices for Samsung’s memory chips. This could, in turn, dampen demand for smartphones and other electronic devices reliant on Samsung’s silicon. The company has set an ambitious shipment target of 229.4 million handsets for 2025, which is 8 million units lower than the previous estimate of 239 million. Overall, the outlook remains grim for Samsung, and without a definitive strategy for the coming year, its operating profit projections may continue to decline.

News Source: The Chosun Daily

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