Samsung Electronics is set to announce a new shareholder return programme worth more than 100 trillion won ($71.75 billion) later this month as the world’s biggest memory-chip maker prepares to distribute a larger share of record profits generated by an artificial intelligence-driven chip boom.
The South Korean technology giant is expected to hold a board meeting at the end of August to approve the plan, which is expected to include a special dividend.
The programme would represent a major expansion of Samsung’s shareholder returns at a time when demand for high-end memory chips used in AI data centres is surging. The company has benefited from a sharp recovery in the semiconductor cycle after a prolonged downturn, with AI infrastructure investment by major technology companies driving demand for high-bandwidth memory and other advanced chips.
Samsung has historically returned a portion of its free cash flow to shareholders through regular dividends and share buybacks. Under its previous three-year shareholder return policy, covering 2021 through 2023, the company committed to returning 50% of free cash flow to shareholders, while maintaining a regular annual dividend.
The new programme is expected to retain a 50% free-cash-flow payout ratio, MoneyToday reported, but could include additional distributions reflecting the company’s stronger cash generation.
The move also comes as Samsung faces growing pressure to match the shareholder-friendly policies of its domestic rival SK Hynix, which has emerged as a major beneficiary of the AI memory boom.
SK Hynix, the world’s second-largest memory-chip maker behind Samsung, on Wednesday announced a 40 trillion won share buyback and cancellation programme, the largest shareholder return programme unveiled by a publicly listed South Korean company. It also said it would allocate more than 50% of free cash flow generated between 2025 and 2027 to shareholder returns.
The competing announcements highlight how the AI-driven semiconductor boom is reshaping the finances of South Korea’s two largest memory-chip companies. Both are seeking to balance heavy investment in advanced chip production with demands from investors for higher returns.
Samsung has been investing heavily to expand its semiconductor manufacturing capacity and strengthen its position in high-bandwidth memory, a market where SK Hynix has gained an early lead by supplying advanced memory used alongside AI processors.
Samsung’s board is expected to consider the new shareholder return policy at the end of August, according to MoneyToday.
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