Samsung Electronics (005930.KS) reported a steeper-than-expected 21% drop in Q1 operating profit to ₩6.3 trillion ($4.6B), missing analyst estimates of ₩7.1 trillion, as its AI chip division underperformed and foundry losses mounted.

Key Pain Points:

• AI Chip Miss: HBM3 memory sales lagged behind SK Hynix despite 300% industry demand growth
• Foundry Troubles: $700M loss in chip contract manufacturing amid yield issues at 3nm nodes
• Mobile Weakness: Galaxy S25 launch delay cut smartphone profits by 18% YoY

Silver Linings:

• DRAM prices rose 15% QoQ
• 2nm GAA process on track for 2026