Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Samsung Electronics has warned that US tariffs will hit demand for its products as the world\u2019s largest maker of memory chips and smartphones presented a downbeat outlook for the year.The South Korean company said \u201cgrowing policy risks\u201d would increase uncertainty for its chip business, while tariffs would raise prices for smartphone components and put downward pressure on mobile device sales.\u201cOngoing uncertainty surrounding US tariff policies continues to pose a potential risk of demand slowdown,\u201d said chief financial officer Park Soon-cheol during an earnings call on Wednesday.\u201cWe believe changes to the tariff policies in major economies as well as stronger export controls against [artificial intelligence] have already been adding to rising uncertainties in expected demand in the second half.\u201dDonald Trump\u2019s pause of his \u201creciprocal tariffs\u201d had encouraged some customers to move up their orders, Samsung said, but the company cautioned the frontloading could have \u201csome negative impact\u201d on demand in the second half of the year.The warning came as Samsung\u2019s chip business reported a roughly 40 per cent drop in first-quarter operating profit as sales of its high-bandwidth memory chips used in AI hardware were hit by tougher US export controls on China.Analysts estimate Samsung generates about a third of its HBM sales in China. The export controls\u2019 impact outweighed an increase in orders from Chinese customers stockpiling memory chips ahead of US levies.Most semiconductors have been exempt from Trump\u2019s \u201creciprocal tariffs\u201d, but the president has said he plans to impose duties on chips \u201cvery soon\u201d. The US has also been tightening restrictions on chipmakers selling to China after Chinese AI start-up Deepseek\u2019s breakthroughs this year.Samsung shares fell 0.4 per cent on Wednesday along with the broader Kospi benchmark. The company\u2019s shares are down more than 28 per cent for the year as it has failed to ride the AI boom.The chipmaker is struggling to catch up with rival SK Hynix, whose shares have risen 2 per cent this year, in the high-margin HBM business. Samsung\u2019s advanced HBM chips have yet to pass qualification tests for Nvidia, a major client of both companies.Samsung spent Won9tn ($6.3bn) on research and development in the first quarter, up 16 per cent from a year ago, amid growing concern over its weakening technological edge. It plans to increase production of its advanced 12-layer HBM3E chips in the current quarter as it expects strong demand for AI servers.\u201cThe memory cycle seems to have hit the bottom, but the company\u2019s shares have been weighed by growing uncertainties related to tariffs and regulations,\u201d said Albert Yong, managing partner at Petra Capital Management, a Seoul-based hedge fund. \u201cSamsung\u2019s performance is unlikely to improve dramatically without HBM sales to Nvidia.\u201dThe US has suspended \u201creciprocal tariffs\u201d on dozens of countries, including South Korea and Vietnam, until July but a minimum 10 per cent duty still applies and is likely to increase prices of Samsung\u2019s various consumer electronics such as smartphones and TVs.Samsung produces nearly half of its smartphones in Vietnam, while most of its TVs sold in North America are made in Mexico. The company said it would prepare measures to cope with US tariffs, including considering relocating the production of TVs and other home appliances.<\/p>\n","protected":false},"excerpt":{"rendered":"
Summarize this content to 2000 words in 6 paragraphs in Arabic Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Samsung Electronics has warned that US tariffs will hit demand for its products as the world\u2019s largest maker of memory chips and smartphones presented a downbeat<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[63],"tags":[],"class_list":{"0":"post-295899","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-tech"},"_links":{"self":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/295899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/comments?post=295899"}],"version-history":[{"count":0,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/posts\/295899\/revisions"}],"wp:attachment":[{"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/media?parent=295899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/categories?post=295899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globetimeline.com\/ar\/wp-json\/wp\/v2\/tags?post=295899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}