Samsung’s second-quarter profit exceeded half, and there was insufficient expectations for lack of chip business.

Samsung Electronics reported on Thursday that its operating profit in the second quarter was 4.7 trillion won, with a lack of expectations due to a sluggish chip business.

Samsung’s second-quarter operating profit exceeded its forecast of about 4.6 trillion won, but it was a huge drop compared to 10.44 trillion won a year ago.

The South Korean technology giant’s quarterly revenue was 74.6 trillion won, slightly higher than the 74.07 trillion won a year ago, surpassing its 74 trillion won forecast.

This is Samsung’s second quarter results compared to LSEG Smartestimate, which is a prediction of analysts that are more consistent:

• income: 74.6 trillion won (US$53.5 billion) and 74.43 trillion won
• Operating profit: 4.7 trillion won, 53,300 won

It is worth noting that its equipment solutions division covers its memory chip, semiconductor design and casting business divisions, with operating profits declining by 93.8% year by year.

Samsung’s electronic chip business had operating profit of 400 billion won in the second quarter, down from 6.45 trillion won in the same period last year.

ChIP revenue fell to 279,000 won from 28.56 trillion won last year.

“The inventory value adjustments to memory and one-time costs associated with the impact of China’s export restrictions in non-memory have adverse effects on profits,” the company said in a statement.

Samsung’s foundry business will be boosted from $16.5 billion in the following quarters to provide chips to a large company disclosed on Monday.

Although Samsung has not named its rival, Tesla CEO Elon Musk said it is his U.S. electric car maker and the deal could be bigger than the announcement.

Meanwhile, in the second half of this year, Samsung said it plans to actively meet the growing demand for high-value and AI-driven products and continue to enhance the competitiveness of advanced semiconductors.