Shares in Samsung Electronics Co. continued to surge on the Seoul bourse Thursday on the back of rosy outlook for its semiconductor business.

Samsung shares advanced 0.29 percent to close at a new all-time high of 69,700 won ($63). During the session, Samsung shares surpassed the 70,000-won mark for the first time, reaching as high as 70,500 won at one point.

Shares in Samsung have been skyrocketing recently with massive foreign buying on expectations of a big boom in the chip industry next year.

The share price of Samsung was only 57,400 won at the beginning of November.

"Samsung Electronics has been anchoring foreign investors' so-called 'buy Korea' trend recently," Hwang Min-seong, an analyst at Samsung Securities, said. "Next year's earnings recovery, shareholder return policy, and its valuation will be all reflected in its share price."

South Korea's No. 2 chipmaker SK hynix Inc. also saw its stock price rally.

SK hynix shares hit a fresh new high as well, touching as high as 114,500 won before closing at 111,500 won, up 2.29 percent from a day earlier. The share price of SK hynix was only 79,600 won on Nov. 2.

A recent report from the World Semiconductor Trade Statistics (WSTS) boosted positive outlook for the chipmaking sector and pushed up local chipmakers' share prices, analysts said.

The industry body expected the global semiconductor market to grow 5.1 percent on-year to $433 billion this year, revising its previous forecast of 3.3 percent growth, and also predicted that its growth will reach 8.4 percent in 2021.

In particular, WSTS said it expects the memory sector to post 12.2 percent growth for 2020. Samsung and SK hynix are the world's two leading memory chip makers.

Analysts said the first-quarter earnings guidance revision from Micron Technology Inc., the world's third-largest DRAM maker, also backed the positive outlook for next year's chip industry.

Micron recently raised its guidance range for adjusted earnings per share for the first quarter to 69 cents to 73 cents from 40 cents to 54 cents, while increasing its midpoint revenue guidance from $5.2 billion to $5.73 billion.

Analysts expected the DRAM industry particularly could experience supply shortage next year.

"DRAM demand growth in the next year is estimated to be around the high 10 percent range, but the supply growth is expected to be lower than that level," Hwang Ko-un, an analyst at KB Securities, said. "DRAM prices could rebound from the end of the first quarter next year and start the 'super cycle' of the industry." (Yonhap)