Samsung Electronics, the largest memory chipmaker globally, has reported third-quarter operating profits of 9.1 trillion won (approximately US$6.78 billion).

This significant decrease underscores the mounting challenges facing its semiconductor division due to intensified competition.

Samsung’s anticipated operating profit represents a decline from 10.44 trillion won in the previous quarter, reflecting a drop from the 2.43 trillion won reported during the same period last year.

Young Hyun Jun, vice chairman of Samsung’s Device Solutions Division, linked part of the earnings decline to the delayed release of high-end HBM3E chips, critical for the expanding AI market.

Analysts caution that Samsung’s late entry into this sector has left it vulnerable, particularly apparent as competitors like SK Hynix gain traction in supplying high-bandwidth memory chips to major clients such as Nvidia.

Samsung’s difficulties persist with its share price falling over 20% since January.