SEOUL (Reuters) – Samsung Electronics (005930.KS) warned on Wednesday that Japanese curbs on the export of chip-making materials was blurring its outlook and said it would delay a plan to return money to shareholders due to “significant new challenges.”
The South Korean tech giant also posted a 56% plunge in June-quarter profit as an oversupply of memory chips continued to weigh down prices.
The profit decline and uncertain outlook overshadowed the company’s optimism that the chip market had bottomed out and would start to recover in the second half. Samsung shares were down almost 3%, underperforming the broader market .KS11.
“In addition to already high uncertainties caused by prolonged global trade conflicts, the external environment regarding our component business has recently come under significant new challenges,” Robert Yi, Samsung’s head of investor relations, said on an earnings call.
“As a result, we no longer believe it is possible to reasonably predict or…
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