Analysts are expecting Samsung Electronics Co Ltd., to report record profit for the fourth-quarter on solid demand regarding server memory chips and higher margins in contract manufacturing. According to a Refinitiv SmartEstimate of fourteen analysts, operating profit for the world's biggest memory chip and smartphone maker is expected to hit 15.2 trillion won ($12.7 billion) in the quarter that ended in December 2021. This will be 68 percent higher than the 9.05 trillion won a year ago and at least beat the previous Q4 record profit of 15.15 trillion reported in 2017.

Samsung Electronics' shares have scaled about 12 percent in the last two months in anticipation of higher memory chip prices this year, boosted by new data centres to demand for videos, games, conferencing and other streaming services.

Jeff Kim, analyst, KB Securities says, “contrary to previous concerns, the semiconductor industry is likely to see demand increase significantly from customers in both memory and non-memory sectors.”

As of December, major data centre companies in North America such as Amazon, Microsoft and Meta have steadily increased their memory chip orders and Samsung’s foundry business has won two years of orders through 2023.

According to analysts, Samsung's chip contract manufacturing business, which competes with Taiwan Semiconductor Manufacturing Co (TSMC), has also seen sharply improved profitability from the previous quarter to reach an operating margin between 10 percent and 20 percent due to more deliveries and higher prices.

“Samsung's overall Q4 chip profit is likely to reach 9.7 trillion won, more than double the previous year's 3.85 trillion won,” analysts say.

For Samsung's mobile business, which was merged into a single Device Experience (DX) division with TV and home appliances is expected to rose slightly from the previous quarter due to easing component shortages.

Company says, “market participants will be tuning into Samsung's full results later this month for any updated impact on its Xian NAND flash chip manufacturing facilities, firm would temporarily adjust operations there due to strict COVID-19 curbs in the Chinese city.”