The artificial intelligence boom is no longer just translating into full order books for semiconductor manufacturers; it is also resulting in unprecedented liquidity for their shareholders. According to reports, Samsung Electronics is planning to announce a capital return program exceeding 100 trillion won (approximately $72 billion), marking a historic moment for corporate governance in South Korea.
The $100 Billion Strategy
Samsung's move follows SK Hynix's recent announcement of a share buyback and cancellation program worth 40 trillion won ($28.6 billion). If Samsung's plan is approved by its board in late August, the world's two largest memory chip makers will have committed a combined total of over $100 billion to reward their investors within a very short period.
Samsung's plan includes:
- Allocating approximately 50% of free cash flows to dividends.
- A strong emphasis on cash payments and the possibility of a special dividend.
- Maintaining the existing policy for regular annual dividends of 9.8 trillion won.
AI as a Cash Machine
The driving force behind this abundance of capital is the demand for High Bandwidth Memory (HBM). These specialized chips are essential for data processing in advanced AI processors. SK Hynix, as a key supplier to Nvidia, currently holds a leading position, while Samsung is investing aggressively to close the gap.
SK Hynix has already launched its own buyback program, scheduled to run from August 20 to November 19, 2026, aiming to increase the value of existing shares by canceling the acquired securities.
