Samsung Electronics said Friday that its third-quarter operating profit moved up a sharp 20.4 percent on-year to hit a record high, fueled by its chip business.

Operating profit came to 17.5 trillion won (US$15.4 billion) in the July-September period, rising from 14.53 trillion won posted a year earlier, the South Korean tech giant said.

Sales advanced 4.7 percent to reach 65 trillion won over the cited period, the company added.

The operating profit to sales ratio came to 26.9 percent, also a record high.

Samsung did not announce the performances of respective business divisions. The finalized earnings report will be announced later this month.

The record earning was apparently attributable to its chip business, despite the weaker outlook over the global chip industry. Obviously, Samsung still sought to expand sales by finding new business opportunities, while also enjoying strong seasonal demand.

Contract prices for 32-gigabyte DRAM server modules fell 0.1 percent in the three months ended September. Prices for 128 gigabit MLC NAND flash memory chips fell about 6.9 percent.

The company's smartphone business is expected to have posted a weaker performance compared to a year earlier. Samsung Electronics launched the Galaxy Note 9 in August, but intensifying competition in the global market, especially by Chinese rivals, weighed down on the South Korean tech giant.

Samsung is widely expected to revitalize its smartphone business by releasing fifth-generation network and foldable models next year.

The display business is expected to have also posted an improvement following increased shipments to China. The consumer electronics division is thought to have remained stable.