Samsung Electronics to announce over $72 billion shareholder return program, media reports

Samsung Electronics is poised to announce a substantial shareholder return program valued at over 100 trillion won ($71.75 billion) later this month. The initiative aims to distribute record profits, driven by an AI-fueled chip supercycle, to shareholders.

According to media reports citing industry sources, the South Korean memory-chip maker will convene a board meeting at the end of August to finalize the plan. This program is expected to feature a special dividend and commit 50% of the company's free cash flow towards shareholder returns.

The move by Samsung comes shortly after its local competitor, SK Hynix, unveiled its own significant shareholder return initiative. SK Hynix announced a 40 trillion won share buyback and cancellation plan, which is the largest of its kind by a publicly listed South Korean company. SK Hynix also committed to allocating over 50% of its free cash flow generated between 2025 and 2027 to shareholder returns.

Samsung Electronics has declined to comment on the reports. The company's potential large-scale shareholder return program signals a strategy to reward investors amidst strong market conditions in the memory chip sector.