Samsung Electronics' June-quarter profit is expected to plunge 96% on-year to the lowest for any quarter in more than 14 years, as a chip glut continues to drive large losses in the tech giant's cash cow business despite a supply cut.
A U.S. lawmaker's demand for trade curbs on a Chinese memory chipmaker in response to China calling products from Micron Technology a national security risk is the latest escalation of tension between the big powers.
In the years before China declared U.S. firm Micron Technology's products a national security risk, authorities were already scaling back purchases of its chips, opting instead for domestic or South Korean options, documents showed.
Shares in South Korea's Samsung Electronics 005930.KS and SK Hynix rose in morning trade on Monday after China failed U.S. memory chip rival Micron Technology in a security review.
Samsung Electronics Co Ltd flagged a gradual recovery for chips in the second half of the year after its semiconductor business reported a record loss on Thursday, driven by weak demand for tech devices.