Seoul: Samsung Electronics Co. on Thursday reported a record-breaking operating profit for the fourth quarter, touching the 20 trillion-won (US$13.8 billion) mark for the first time, driven by a supercycle in the chip industry. The fourth-quarter operating profit marked a more than 200 percent rise from a year earlier, the company said in a preliminary earnings report. If confirmed, it would mark the first time for the company's quarterly earnings to reach the 20 trillion-won level.

According to Yonhap News Agency, sales increased 22.7 percent to 93 trillion won. The data for net profit was not available. The operating profit was 1.8 percent higher than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency. Samsung Electronics did not disclose a detailed earnings breakdown for its individual business divisions. The company will release its final earnings report later this month.

Analysts said the increased earnings apparently came amid improved profitability at the Device Solutions (DS) division, which covers the company's core semiconductor business. According to Korea Investment and Securities Co., global prices of dynamic random-access memory (DRAM) and NAND flash jumped about 40 percent in the fourth quarter from the previous three-month period. Market observers estimate the operating profit of the DS division at around 16 trillion to 17 trillion won.