Samsung Electronics on Tuesday projected a far worse than expected 56% plunge in second-quarter operating profit due to weak AI chip sales, deepening investor concerns over the tech giant's ability to revive its struggling semiconductor business.

Samsung Electronics said on Tuesday it expected its second-quarter operating profits to fall by more than half, blaming US export controls on advanced artificial intelligence (AI) chips to China.

Samsung Electronics reports a 56% drop in operating income for Q2, marking its first profit decline since 2023 due to challenges in the memory chip market.