Samsung Electronics reported a record quarterly profit, fueled by a staggering 49-fold increase in income from its chip division, which reached 53.7 trillion won ($36.15 billion) in the first quarter of 2023. This surge is attributed to the growing demand for memory chips driven by the proliferation of AI datacentres. The company anticipates that the supply shortage will worsen, with Samsung executive Kim Jaejune stating that the supply-demand gap for 2027 is expected to widen beyond that of 2026. Despite securing multi-year contracts with clients, Samsung faces challenges in meeting demand due to production capacity constraints. Overall revenue for the quarter rose 69% year-on-year to 133.9 trillion won. However, rising costs for conventional chips have negatively impacted profitability in other divisions, including mobile phones and displays. Samsung's stock has seen an 88% increase this year, significantly outperforming the broader market's 57% gain. The company is also preparing for potential production disruptions due to ongoing labor disputes among workers in South Korea's chip division.