South Korean memory giants Samsung Electronics Co. and SK hynix Inc. are expected to report record first-quarter earnings on the back of rebound in chip prices.

According to an analysis conducted by Yonhap News Agency of brokerage consensus on Monday, Samsung Electronics is projected to report 13 trillion won ($10.6 billion) in operating income in the January-March period on sales of 75.2 trillion won. Operating profit is up 38.64 percent from the same period a year ago and sales 15.02 percent.

Sales would have retreated from the fourth quarter, but would likely exceed 70 trillion won for the first time for the first quarter.

SK hynix is also projected to raise 11.58 trillion won in revenue in the first quarter, up 36.36 percent on year, marking the first time for the chipmaker to exceed 10 trillion won in first quarter sales.

Operating income is expected at 3.1 trillion won, up 137.08 percent from a year ago.

The record earnings come despite multiple industry whammies such as rise in raw materials costs, Russia’s invasion of Ukraine, and global supply chain crisis.

Samsung Electronics has seen setback in its latest premium smartphone series over throttling issue and foundry yield.

Still, it would have weathered the challenges from strengthened chip prices and boost in new smartphone sales.

Eo Kyu-jin, an analyst at DB Financial Investment, said that DRAM and NAND flash memory prices each fell mildly at 6.2 percent and 5.1 percent in the first quarter, and its IT & mobile communications division is expected to report improved results thanks to Galaxy S22 release.

Full-year prospects are equally bright.

Samsung Electronics is expected to report record annual earnings of over 300 trillion won thanks to rebound in DRAM industry.

Park Yoo-ak, an analyst at Kiwoom Securities, also said that the memory chip market will change to that focusing on suppliers from the second quarter and projected SK hynix’s second quarter revenue to jump from the previous three months to 14 trillion won and operating income 4 trillion won.

Shares of Samsung Electronics were trading 0.14 percent lower at 69,700 won while SK hynix 0.42 percent higher at 118,500 won.

By Pulse

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