The profit of the large South Korean technology group Samsung Electronics fell sharply in the past quarter.
This is partly due to weaker demand for its chips for artificial intelligence (AI) applications resulting from US export restrictions against China.
In addition, Samsung is facing increased competition in the AI chip market. According to preliminary figures, operating profit fell 56 percent year-on-year to 4.6 trillion won, more than 2.8 billion euros. Compared to the first quarter of this year, profit fell 31 percent.
Samsung is facing increased competition in the AI chip market from companies such as SK Hynix and Micron Technology. Write-downs also hit profits on unsold chip inventory.
Samsung said the results were weaker than market expectations. The company is not only a major chip supplier but also the producer of the Galaxy smartphones. Samsung will publish the full quarterly figures later this month.