Samsung Electronics Set to Unveil Over $72 Billion Shareholder Return Programme Amid AI Chip Boom

Samsung Electronics is preparing to announce a new shareholder return policy worth more than 100 trillion won ($71.75–72 billion) later this month, according to media reports, as the company seeks to share record profits from an AI-driven memory chip supercycle with investors. The South Korean tech giant will hold a board meeting at the end of August to approve the plan, which is expected to include a special dividend and allocate 50% of free cash flow, MoneyToday reported citing unidentified industry sources. The move follows rival SK Hynix’s record 40 trillion won share buyback.

Samsung Eyes 100–200 Trillion Won Annual Shareholder Returns (50% of FCF) After SK Hynix’s Record 40 Trillion Won Buyback

• MoneyToday reported that Samsung will spend 50% of its free cash flow on the new programme, with measures focused mainly on cash dividends, including a special dividend. The board is scheduled to approve the plan by the end of August 2026.
• This builds on Samsung’s existing FY 2024–2026 shareholder return policy, under which it pays a regular annual dividend of approximately 9.8 trillion won as part of total returns equal to 50% of free cash flow. The company has said it will consider early capital returns if significant surpluses arise.
• On Wednesday, SK Hynix, the world’s second-largest memory-chip maker, unveiled a 40 trillion won ($28.6–29 billion) share buyback and cancellation programme — the largest by a publicly listed South Korean company. It will repurchase about 24.07 million shares (roughly 3.3% of outstanding shares) between 20 August and 19 November 2026 and cancel them. SK Hynix also raised its target to return more than 50% of cumulative free cash flow generated between 2025 and 2027.
• Samsung declined to comment on the reports. In its July 2026 second-quarter earnings call, CFO Park Soon-cheol said the board and management were discussing implementation measures, including a special dividend, and the next shareholder-return policy, adding the company would share a plan to balance maximising shareholder value with reinvestment for future growth.
• Analysts at KB Securities have estimated Samsung’s next programme could range from 100 trillion won to as much as 200 trillion won annually — more than 10 times the current regular dividend level — potentially lifting the dividend yield above 7% at recent share prices. Other brokerages have projected returns in the mid-100 trillion won range for this year.

SK Hynix Jumps 13%, Samsung 10% on Buyback News Before Closing Down 9.75% and 7.82%

SK Hynix shares rose as much as 13% and Samsung advanced more than 10% at the day’s peak following the rival’s buyback announcement, reflecting investor appetite for higher returns amid strong cash generation. However, broader market pressure from rising U.S. bond yields and concerns over AI investment costs later weighed on the sector: on 19 August 2026, Samsung closed down 7.82% at 247,500 won and SK Hynix fell 9.75%, contributing to a nearly 6% drop in the KOSPI. Analysts view large-scale returns as a potential catalyst for re-rating once confirmed, especially given Samsung’s net cash position of about 167.59 trillion won at the end of June 2026 (roughly double year-earlier levels).

Samsung Posts Record Q2 Revenue of ₩171.5 Trillion and Operating Profit of ₩89.5 Trillion on AI Memory Boom

Samsung and SK Hynix are benefiting from an AI-driven memory supercycle, with surging demand for high-bandwidth memory (HBM), DRAM and related products. In the second quarter of 2026, Samsung reported record consolidated revenue of 171.5 trillion won and operating profit of 89.5 trillion won. Its Device Solutions (semiconductor) division alone posted 127.5 trillion won in revenue and 89.2 trillion won in operating profit. First-half cash generated from operations exceeded 145 trillion won, with Q2 operating cash flow around 105 trillion won.

Samsung last paid a major special dividend in 2020 (10.7 trillion won). The current environment of elevated free cash flow and net cash has revived expectations of another significant one-off payout alongside the regular programme. The company continues to invest heavily in capacity and technology (including foundry and next-generation HBM) while balancing shareholder returns. Combined cash holdings of Samsung and SK Hynix have also risen sharply, giving both firms substantial firepower for returns and capital expenditure.

Samsung Board to Approve Shareholder Return Plan by End-August; SK Hynix Details Expected with Q3 Results

Samsung’s board is expected to meet at the end of August 2026 to formalise the new shareholder return plan. Details on the exact mix of special dividends, any buybacks, and the multi-year framework will likely follow the approval. SK Hynix has indicated further return measures (including possible additional dividends) could be detailed around its third-quarter earnings. Investors will watch both companies’ free cash flow trajectory, memory pricing trends, and any shifts in AI infrastructure demand as the programmes are implemented. Analyst estimates for Samsung’s full-year and multi-year returns remain subject to confirmation by official company announcements.