Samsung Electronics is preparing to unveil a massive new shareholder return programme that could exceed 100 trillion won ($71.75 billion), according to South Korean media reports, as surging demand for artificial intelligence chips delivers a powerful boost to the technology giant's earnings.
The company is expected to convene a board meeting toward the end of August to consider and approve the new shareholder return policy, MoneyToday reported on Thursday, citing people familiar with the industry.
The proposed programme is expected to include a special dividend, although details of the potential payout have yet to be formally disclosed.
Under the reported plan, Samsung could allocate 50% of its free cash flow to shareholder returns, marking a significant commitment to investors at a time when the global semiconductor industry is benefiting from an AI-driven boom.
Samsung declined to comment on the reports.
Samsung moves as AI demand transforms chip market
The potential payout comes as the memory-chip industry enters a period of exceptional growth, driven largely by the rapid expansion of artificial intelligence infrastructure.
Demand for advanced memory products used in AI servers has surged as technology companies and data-centre operators race to build computing capacity capable of training and running increasingly sophisticated AI models.
Samsung, the world's largest memory-chip maker, is among the major beneficiaries of the cycle. Strong demand for high-performance memory has helped lift expectations for earnings across the semiconductor industry and encouraged chipmakers to return more cash to investors.
The reported Samsung plan would also put the company in a race with local rival SK Hynix, which announced an even more immediate and clearly defined shareholder reward programme on Wednesday.
SK Hynix announces record buyback
SK Hynix said it would spend 40 trillion won on a share buyback and cancellation programme, making it the largest shareholder return programme ever announced by a publicly listed South Korean company.
The memory-chip maker also said it would return more than 50% of its free cash flow generated between 2025 and 2027 to shareholders.
The move underscores how the semiconductor boom is reshaping capital-allocation strategies among South Korea's leading technology companies.
For investors, large-scale buybacks and dividends can provide a direct benefit from higher corporate earnings while potentially supporting share prices by reducing the number of shares in circulation.
Samsung's reported decision to commit half of its free cash flow to shareholders would therefore represent a substantial change in the scale of capital being returned to investors.
Investors await Samsung's official decision
Although the reported value of more than 100 trillion won would make Samsung's proposed programme one of the most significant shareholder-return initiatives in South Korea, the company has yet to confirm the details.
The board meeting expected later this month could provide greater clarity on the size, structure and timing of the programme, including whether a special dividend will be approved.
The timing is significant. Samsung and SK Hynix are competing for leadership in a memory-chip market increasingly shaped by demand for high-bandwidth and other advanced memory technologies required by AI systems.
As the AI infrastructure boom continues, investors are watching closely to see whether record semiconductor profits translate into sustained dividends, buybacks and other forms of shareholder rewards.
For Samsung, a programme worth more than 100 trillion won would send a strong signal that the company intends to share the benefits of the semiconductor upcycle with its investors while maintaining its position at the centre of the global AI supply chain.