Samsung Electronics on Tuesday projected a far worse than expected 56% plunge in second-quarter operating profit due to weak AI chip sales, deepening investor concerns over the tech giant's ability to revive its struggling semiconductor business.

Samsung Electronics said on Tuesday it expected its second-quarter operating profits to fall by more than half, blaming US export controls on advanced artificial intelligence (AI) chips to China.

Samsung Electronics has projected a sharp 56% decline in its second-quarter operating profit, citing weak AI chip sales and intensifying US restrictions on advanced chip exports to China. The profit warning has sparked renewed concerns over the South Korean tech giant’s ability to turn around its struggling semiconductor division.