Samsung has estimated that its operating profit for the first quarter of 2024 will rise by over 900 per cent.

If predictions are correct, this will be the highest operating profit recorded by the company since the third quarter of 2022.

The technology giant estimated that its operating profit rose to 6.6 trillion won in the January-March quarter, 931 per cent higher than the 640 billion won recorded during the same period in 2023.

Samsung’s strong performance is likely influenced by rising chip prices, which the South Korean firm said was a result of increased interest in AI.

The electronics company recently said that it plans to invest $230 billion in South Korea’s chipmaking base over the next two decades through to 2042.

Samsung will release a full financial report confirming the results at the end of April.

In January president of South Korea Yoon Suk Yeol said that the country will extend tax credits on investments in its semiconductor industry.

The country began offering large tax breaks to semiconductor companies investing in domestic business in January 2023.

The tax breaks are currently set to expire at the end of 2024.

Earlier this year, Apple overtook Samsung as the world’s largest seller of smartphones, a position Samsung had held for 12 years.

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