"Production cuts across the industry are likely to continue in the second half, and demand is expected to gradually recover as clients continue to destock their (chip) inventory," Samsung, the world's biggest memory chip maker, said in a statement.
It had reported a 9.98 trillion won profit a year earlier.
Samsung said it spent 14.5 trillion won in capital expenditures during the second quarter, of which 13.5 trillion won was spent on chips.
Operating profit fell to 669 billion won ($527 million) in April-June, from 14.1 trillion won a year earlier.
Samsung's mobile business reported a 3.04 trillion won profit in the June quarter, up from 2.62 trillion won a year earlier.
Persons:
Jaejune Kim, Taiwan's TSMC, Apple's, 1,269.2200, Joyce Lee, Miyoung Kim, Jamie Freed
Organizations:
Samsung, SK Hynix, Samsung Electronics, South, SK Hynix's, Qualcomm, Revenue, Thomson
Locations:
SEOUL