Samsung Electronics, the world’s largest mobile phone manufacturer, announced a 53% increase in fourth-quarter operating profit as record sales aided the company’s recovery despite supply chain interruptions.

Operating profit increased to 13.87 trillion won ($11.5 billion) in the three months to the end of December, the business said in a statement on Thursday.

In accordance with forecasts, quarterly sales increased by more than 24% to a record 76.57 trillion won from the same time in 2020.

According to the corporation, revenue growth was driven mostly by the completed product companies, with an increase in sales of luxury smartphones, including foldable phones, as well as TVs and home appliances.

Full-year operating profit increased by 43.4 percent to 51.63 trillion won, while sales increased by 18 percent to a record 279.6 trillion won, owing to the strength of its semiconductor industry.

Despite solid profits, Seoul-based Samsung’s stock price fell 2.73 percent on Thursday.

Samsung’s consumer electronics and components division drove sales and profitability in both the fourth quarter and the year.

The semiconductor business’s 8.84 trillion won operational profit accounted for about 64% of its fourth-quarter performance. The semiconductors company made 26.01 trillion won in sales.

According to aggregated numbers from its website, the segment produced about 57% of the company’s operating profit and more than a third of sales for the whole fiscal year 2021.

As of Thursday, Samsung was the world’s third-largest chip producer, with a $400 billion market capitalization. It is so larger than Intel, Qualcomm, and Advanced Micro Devices. According to CompaniesMarketCap, it is trailing Taiwan Semiconductor Manufacturing Company and California-based Nvidia.

The global semiconductor industry, which was plagued by supply challenges in 2021 due to the Covid-19 pandemic, is poised for a big rebound this year, with sales expected to cross $600 billion for the first time, driven by “unusually strong” consumer electronics demand, according to a report earlier this month by Allianz subsidiary Euler Hermes.

Worldwide chip sales increased by 26% to an all-time high of $553 billion in 2021, making the larger electronic component business one of the winners of the epidemic, according to the report.

The business anticipates that supply will remain tight in 2022, but that it will work on boosting process yield to increase supply stability. It intends to outperform market growth by increasing capacity, changing pricing, and acquiring new clients. It revealed plans to build a $17 billion semiconductor facility north of Austin, Texas, in November.

In the fourth quarter, Samsung’s mobile segment recorded sales of 28.95 trillion won and an operating profit of 2.66 trillion won. In 2021, the segment remained the largest in the whole business, accounting for about 40% of total revenue. According to the company’s financial filings, the last time its earnings surpassed that of the semiconductor unit was in the first quarter of 2021.

Samsung has also routinely ranked first in the smartphone industry. According to preliminary figures from research company Canalys, iPhone maker Apple retook the top rank in the fourth quarter of 2021, with a market share of 22% vs Samsung’s 20%.

The business warned that uncertainty would endure in 2022 because to the protracted impacts of the Covid-19 epidemic, as well as component shortages that were anticipated to persist. It also predicts the smartphone market to expand and the wearable industry to expand by double digits.

“The firm will seek for material growth in 2022 and will continue to increase profitability via enhanced product mix and operational efficiency,” it added.

Samsung’s results come in the run-up to the company’s first major event for 2022, Galaxy Unpacked, which will be held on February 9, when it reveals its new Galaxy S22 line-up.