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Companies

Samsung faces growing headwinds as Japan's export controls kick in

Tighter regulation hits 'vulnerable spot' for South Korean technology group

Samsung has so far received only limited tail-wind benefits related to the U.S. limitations on American companies doing business with Chinese smartphone rival Huawei.   © Reuters

SEOUL -- Samsung Electronics is losing ground as demand for memory chips and smartphones slowed in the face of a trade war. Its consolidated operating profit for the quarter ended June fell 56% compared with the same period a year ago, following a 60% plunge in the previous quarter.

With the chip market expected to remain soft, Japan's export curbs on semiconductor materials bound for South Korea could exacerbate the company's pain. The tough business climate could force the South Korean company to cede its top perch in the global market to Intel this year.

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