Samsung Electronics estimated that its second-quarter operating profit jumped 53 per cent to its highest level in three years on surging chip prices, as demand for electronics prolonged a global semiconductor shortage.

The world’s largest producer of memory chips, smartphones and electronic displays projected on Wednesday that operating profit hit Won12.5tn ($11bn) between April and June, compared with Won8.2tn a year earlier. Analysts polled by Refinitiv had forecast operating profit would rise to Won11.3tn. Samsung’s sales were estimated to have grown 18.9 per cent to Won63tn.

The strong earnings highlighted the surging demand for chips, which has depleted inventories and caused supply shortages across industries from automobiles to consumer electronics. Analysts expected chip prices to continue to rise in the second half on tight supply.