Samsung Electronics reported a significant 40% decline in its semiconductor operating profit for the third quarter, amounting to approximately 3.86 trillion won ($2.8 billion). This downturn is attributed to underperformance in mobile and PC demand, despite a boost from AI-driven products in its foundry unit. The company noted that inventory adjustments negatively impacted mobile demand, and it faces increased competition from legacy products in China. While overall sales slightly exceeded expectations, the semiconductor unit's sharp profit drop raises concerns about future growth prospects in a competitive market.

Despite the challenges, Samsung anticipates that demand for advanced chipsets will continue to grow, particularly driven by investments in AI technologies. The company remains a leading manufacturer of memory chips, crucial for laptops and servers, and is positioned as the second-largest player in the global smartphone market. However, the delayed rebound in mobile and PC demand could hinder Samsung's recovery in the semiconductor sector, which is critical for its overall profitability. The ongoing AI boom presents both opportunities and risks, as the industry braces for potential chip shortages due to surging demand.