Samsung Electronics has warned that sales of its AI chips are expected to decline in Q1 2025 due to US export restrictions on China.

The restrictions, introduced in December, affect about 20% of Samsung’s high-bandwidth memory (HBM) chip sales.

The company is also struggling to meet high demands from key clients, including Nvidia, and is facing delays in customer projects due to graphics processing unit (GPU) chips supply constraints.

In Q4 2024, Samsung reported a 29% decline in operating profit, reaching 6.5 trillion won (U$4.48 billion).

Q1 2025 earnings growth is expected to remain weak due to poor demand for memory chips, smartphone and personal computer.

However, Samsung expects a recovery in memory market demand starting in Q2 2025.

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