Samsung Electronics is reportedly preparing to unveil a new shareholder return programme worth more than 100 trillion won ($71.75 billion) later this month, as strong demand for AI-related memory chips boosts earnings across South Korea's semiconductor industry.
The company is reportedly expected to formalise the plan at a board meeting by the end of August.
According to MoneyToday, which cited unnamed industry sources, the South Korean memory chipmaker will convene a board meeting to approve a shareholder return plan that could include a special dividend.
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The report said Samsung could allocate half of its free cash flow to the new initiative.
The reported plan comes after rival memory chipmaker SK Hynix recently announced a 40 trillion won ($29 billion) share buyback and cancellation programme. According to Reuters, the programme is the largest shareholder return policy disclosed by a publicly traded South Korean company.
Both companies have benefited from rising global demand for data centres and AI infrastructure. Advanced High Bandwidth Memory, or HBM, chips used in graphics processing units and generative AI systems have seen demand increase sharply.
Samsung's Global Depositary Receipts rose 5.9% following the media reports, while its shares gained more than 10% at their intraday high during the trading session.
The reported package is expected to focus primarily on cash payouts and special dividends rather than share buybacks. According to an Investing.com report, favouring dividends could help Samsung avoid potential regulatory complications involving its affiliates, Samsung Life Insurance and Samsung Fire & Marine Insurance.
Samsung has not officially confirmed the reported shareholder return plan.
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