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Samsung Elec Q2 profit down 56% as chip troubles persist

SEOUL, July 31 (Reuters) - Samsung Electronics Co Ltd posted a 56% drop in second-quarter operating profit on Wednesday, hit by continuing declines in memory chip prices amid oversupply.

Operating profit was 6.6 trillion won ($5.6 billion) in the second quarter, in line with the 6.5 trillion won estimate the company released earlier this month.

The notoriously cyclical memory chip industry is in the midst of a downturn after a two-year boom, as slowing demand for gadgets such as smartphones pulls down chip prices.

Last week, Samsung's South Korean chip rival SK Hynix said it would cut investment and production to shore up a nascent recovery in chip demand. ($1 = 1,180.7000 won) (Reporting by Ju-min Park and Heekyong Yang; Editing by Stephen Coates)