According to a report by Nikkei Asia on July 7, Samsung Electronics said on Thursday that operating profit in the second quarter may increase by 11.4% from a year earlier, a performance based on shrugging off a series of challenges, including global supply chain bottlenecks and semiconductors. Competition intensifies.

Samsung expects operating profit of 14.0 trillion won ($10.7 billion) in the second quarter, up 11.4 percent from a year earlier. The company also said it expects revenue to reach 77.0 trillion won, up 20.9 percent.

The company will hold a conference call with investors and reporters later this month.

Analysts said Samsung Electronics' earnings were boosted by factors including strong demand for memory chips in the second quarter. But the second quarter was down from the first. The guidance resulted in a 0.9% sequential decline in operating profit and a 1.0% decline in revenue.

Investors reacted positively to the news, with Samsung shares up 2.8 percent in early trade.

Samsung, keen to catch up to TSMC in foundry chips, is building a $17 billion factory near Austin, Texas. The factory, scheduled to open in the second half of 2024, will produce high-performance chips for U.S. semiconductor designers.

Samsung said last week that it had begun mass production of 3-nanometer chips at its semiconductor factory in southern Seoul, becoming the first company to reach the milestone in a bid to underscore the fierce competition in the global chip industry. TSMC has said that its 3-nanometer technology will begin mass production in the second half of this year, while announcing last month that it aims to start producing more advanced 2-nanometer chips by 2025.