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 on Tuesday estimated its second-quarter operating profit plunged 55.9 per cent from a year earlier due to sluggish chip business and the fallout from US trade policies, missing market expectations.

Samsung Electronics (OTCPK:SSNLF) said on Tuesday that it expects a 56% slash in Q2 operating profit compared to last year as the South Korean giant witnessed sluggish chip business due to U.S. trade curbs on China.