SEOUL, Oct. 28 (Xinhua) -- Revenue of Samsung Electronics, South Korea's tech behemoth, hit a record high in the third quarter thanks to strong chip demand, the company said Thursday.
Consolidated revenue advanced 10.5 percent from a year earlier to reach a quarterly high of 73.98 trillion won (63.1 billion U.S. dollars) in the July-September quarter.
Operating profit surged 28.0 percent to 15.82 trillion won in the quarter, and net income jumped 31.3 percent to 12.29 trillion won.
The operating profit marked Samsung's second-highest quarterly reading. The highest profit was 17.57 trillion won tallied in the third quarter of 2018.
The record earnings came as the prolonged COVID-19 pandemic encouraged people to work from home and attend online classes, raising demand for computers and mobile devices.
Samsung's chip-making division logged an operating profit of 10.06 trillion won in the third quarter, accounting for 64 percent of the company's total profit.
It was sharply up from 5.54 trillion won posted in the third quarter of last year.
The semiconductor unit recorded a revenue of 26.41 trillion won in the September quarter as the memory chip business saw a significant improvement in earnings with the record quarterly bit shipment and the second-highest revenue for DRAM chips.
Samsung said it will focus on meeting demand for memory and system semiconductor products even as component shortages at some customers may affect demand.
The display panel division posted an operating profit of 1.49 trillion won on revenue of 8.86 trillion won in the third quarter.
The display earnings improved compared to the previous quarter owing to the strong sales of small- to mid-sized OLED panels despite weak performance in the large display business.
Samsung forecast that the mobile display earnings would remain solid in the fourth quarter amid the strong demand for new smartphones and the increased sales of laptops and gaming devices during the holiday season.
The IT and mobile communication division, which makes smartphones, posted an operating profit of 3.36 trillion won on revenue of 28.42 trillion won during the July-September quarter.
Samsung's smartphone sales increased in the third quarter compared to the prior quarter thanks to the robust sale of flagship models, including Galaxy Z Fold3 and Galaxy Z Flip3.
Samsung forecast that market demand for mobile phones would increase in the fourth quarter due to strong year-end seasonality, though uncertainties over component supply are likely to persist.
The consumer electronics division recorded an operating profit 760 billion won on revenue of 14.1 trillion won in the third quarter.
The earnings declined both quarter-on-quarter and year-on-year owing to a significant rise in material and logistics costs that offset the strong sale of premium TVs and home appliance products.
Samsung expected demand for TV sets to increase in the fourth quarter on a quarterly basis due to year-end seasonality.
During the third quarter, Samsung's capital expenditure reached 10.2 trillion won, including 9.1 trillion won spent on semiconductors and 700 billion won on displays. (1 U.S. dollar equals 1,169.3 won)