Brands
Samsung may unveil Rs 79,000 crore shareholder return plan
Chipmaker could announce up to 110 trillion won payout as AI demand boosts memory
MUMBAI: Samsung may be ready to turn its AI-era gains into shareholder returns. The South Korean electronics giant is expected to unveil a major shareholder return programme on Friday that could be worth as much as 110 trillion won ($79 billion), according to Bloomberg.
Samsung’s board is scheduled to meet at around 4 pm local time, with details of the proposed package expected after the meeting. The programme could be valued between 90 trillion won and 110 trillion won, potentially making it one of the company’s largest capital-return initiatives.
The move comes as investors demand bigger payouts from semiconductor companies riding a wave of spending on artificial intelligence. Strong global demand for AI-related chips has boosted memory manufacturers and increased pressure on Samsung to return more of its cash to shareholders.
That pressure has intensified after rival SK Hynix announced a 40 trillion won share buyback and cancellation programme on Wednesday. According to Reuters, it is the largest shareholder-return initiative announced by a publicly listed South Korean company.
SK Hynix has also pledged to direct more than half of its free cash flow generated between 2025 and 2027 towards shareholder returns, raising the bar for Samsung as the two memory-chip giants compete for investor attention.
Markets have already been betting on a sizeable Samsung payout. Samsung shares fluctuated between gains and losses in early Friday trading before rising about 1.5 per cent at 9:50 am. The company’s preferred shares performed even more strongly, gaining around 8 per cent on the Korea Exchange.
For investors, however, the headline figure will only be part of the story. The crucial details will be how Samsung divides the proposed amount between dividends and share repurchases, as well as the timeline for executing the programme.
Those decisions could provide a clearer picture of how Samsung intends to balance its cash reserves, semiconductor investment and shareholder payouts as the AI-driven chip cycle continues to reshape the industry.
