Samsung Electronics looks to chip recovery as second-quarter profit falls 56 per cent

Samsung Electronics Co Ltd said it expected the chip market to bottom out and start to recover in the second half as it posted a 56 per cent drop in quarterly profit on Wednesday, hit by declines in semiconductor prices amid oversupply.

The outlook from the global chip leader will give investors hope that the notoriously cyclical memory chip industry is shifting out of a downturn linked to slowing sales of gadgets such as smartphones.