Samsung Electronics announced that its Q4 profit jumped 52 per cent year-on-year to its highest due to high demand for server memory chips and higher margins in chip contract manufacturing. Samsung’s estimated October-December profit was $11.5 billion, which was its highest fourth-quarter operating profit since Q4 2017.

Revenues also rose 23 per cent from the same period a year earlier to over $63 million, the company said in a preliminary earnings release. However, rates of memory chips declined during this quarter, but increased demand from server clients raised the tech giant’s quarter-on-quarter shipments of both DRAM chips and NAND flash memory chips which are used for data storage in tech devices.

Samsung Electronics shares have climbed about 11 per cent since November as memory chip prices dropped less than expected ib the first half of this year. But got boosted by new data centres and demand for videos, games, conferencing and other traffic-heavy services. Estimated smartphone shipments by Samsung’s mobile business were about $67 million, helped by reducing component shortages.