Samsung Electronics reported on Thursday a 55% drop in second-quarter operating profit as delays in high-bandwidth memory chip shipments and U.S. export curbs on advanced chip sales to China continued to drag on its key semiconductor division.

Samsung Electronics forecast a gradual second-half recovery for its chips business after second-quarter operating profit at the division plunged 94% from a year earlier due to shipment delays and U.S.

Samsung Electronics reported a 94 percent year-on-year drop in second-quarter operating profit from its semiconductor division, as the group absorbed heavy inventory-related charges despite stable sales volumes.

Samsung Electronics reported a weaker-than-expected 55.23 percent on-year drop in operating profit for the second quarter this year, the company said in a regulatory filing Thursday.

Samsung Electronics said on Thursday a trade deal that will see Washington charge 15% tariffs on imports from South Korea reduces uncertainty and it forecast major chip orders after signing a $16.5 billion deal with Tesla .