Samsung Electronics is preparing to announce a shareholder return plan worth more than 100 trillion won ($71.75 billion), according to reports from Seoul-based outlet MoneyToday, as the South Korean memory-chipmaker moves to share record profits generated by the global AI infrastructure boom.
The company will hold a board meeting at the end of August to approve the plan, which is expected to include a special dividend on top of the regular payout. Under the proposed framework, Samsung would allocate 50 percent of its free cash flow to the new program, signaling a significant increase in capital returns to investors amid unprecedented demand for memory chips used in AI data centers.
AI Supercycle Fuels Record Earnings
The announcement comes as Samsung rides a historic surge in semiconductor demand driven by artificial intelligence workloads. The company’s HBM (high-bandwidth memory) chips, essential for AI accelerators, have seen explosive growth as cloud providers and chipmakers race to expand computing capacity. Samsung’s memory division posted record quarterly profits in recent months, benefiting from strong pricing power and surging orders for both DRAM and NAND products used in AI servers.
The AI supercycle has not only boosted Samsung’s bottom line but has also elevated the company’s strategic importance in the global technology supply chain. Major AI chip designers, including Nvidia, rely heavily on Samsung and its domestic rival SK Hynix for advanced memory components.
SK Hynix Follows With $28.6B Buyback
Samsung’s move follows a similar gesture by SK Hynix, the world’s second-largest memory chipmaker, which on Wednesday unveiled a 40-trillion-won ($28.6 billion) share buyback and cancellation program. SK Hynix’s workers are set to receive an average bonus of 779 million won ($547,000) for 2026, reflecting the scale of the AI-driven profit surge across the sector.
SK Hynix also reached a preliminary wage agreement with its union to pay 60 percent of this year’s employee bonuses in shares and the remaining 40 percent in cash in 2027. The company’s stock jumped 13 percent on Thursday following the buyback announcement, according to Reuters via Manila Times.
Record profits from both SK Hynix and Samsung helped propel South Korea’s benchmark Kospi index to a record high above 9,000 points in mid-June, before the index retreated amid a broader global tech selloff.
Shareholder Returns in Focus
The twin announcements from Samsung and SK Hynix mark a turning point for South Korea’s semiconductor industry, which has historically prioritized reinvestment over shareholder returns. The scale of the proposed payouts reflects growing pressure from international investors who have long criticized Korean conglomerates for hoarding cash rather than distributing it to shareholders.
Under its current shareholder return policy covering 2024-2026, Samsung distributed 20.9 trillion won in cash dividends, comprising 19.6 trillion won in regular dividends and 1.3 trillion won in special dividends. The new plan would represent a dramatic escalation of that commitment, with the company planning to invest over 110 trillion won ($80 billion) in facilities and research and development in 2026 alone.
The Bloomberg report notes that Samsung’s investment plans span both capacity expansion and R&D, as the company races to close the gap with SK Hynix in advanced HBM production and maintain its leadership in conventional memory markets.
Sources: Bloomberg; Reuters via Manila Times; Investing.com; MoneyToday
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