Samsung Semiconductor's profits collapsed, and TSMC picked up the gun again?

Due to the decline in semiconductor prices caused by oversupply and the setbacks in its mobile phone and chip businesses, Samsung's operating profit in the second quarter plummeted 56% compared with the same period last year. What's worse is that the chip business, its main source of profit, plummeted 71%.

Nikkei reported that Samsung has been hit by negative operational factors and its stock price has lagged far behind its rival TSMC; Samsung's plan to use non-memory business as a strategic pillar to pursue TSMC may also be hit hard.

The trade war between China and the United States has disrupted the global supply and demand of chips. Affected by the weak demand for smartphones, the price of memory chips has been slashed by more than 40%. In addition, Japan has imposed an export ban on key semiconductor materials to South Korea. Once the supply is interrupted, Samsung's semiconductor business may be the first to bear the brunt.

Nikkei pointed out that 90% of Samsung's high-purity hydrogen fluoride is imported from Japan. As each contract must be reviewed by the Japanese Ministry of Industry, Samsung's competitiveness may decline, and its supply capacity will also be weakened, leading to customer loss.

If Japan-South Korea relations continue to deteriorate, Apple does not rule out giving some orders to other manufacturers next year to reduce risks.