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Seoul: Samsung Electronics is reportedly preparing a new shareholder return programme worth more than 100 trillion won (about $71.75 billion), as strong demand for artificial intelligence (AI) infrastructure and high-bandwidth memory (HBM) chips boosts the South Korean technology giant’s semiconductor business. The company is expected to formally consider the plan at a board meeting later this month, although Samsung has not officially confirmed the reported package.

According to reports cited by NDTV Profit and Reuters, the proposed programme could include a special dividend and may involve Samsung allocating around half of its free cash flow towards shareholder returns. The reported move comes as the global AI boom drives demand for advanced memory chips used in data centres, graphics processing units and generative AI systems.

The potential payout would mark a major move by Samsung to return cash to investors at a time when the semiconductor industry is benefiting from a powerful AI-led demand cycle. It also comes shortly after rival SK Hynix announced a 40 trillion won share buyback and cancellation programme.

Samsung’s reported 100 trillion won plan

Samsung is reportedly preparing to unveil a shareholder return programme worth more than 100 trillion won, or approximately $71.75 billion.

The plan is expected to be considered at a board meeting by the end of August, according to reports cited by NDTV Profit. MoneyToday, citing unnamed industry sources, reported that the programme could include a special dividend.

The reported proposal has not yet been formally confirmed by Samsung Electronics.

That distinction is important because the figures currently circulating are based on media reports rather than an official company announcement.

If approved, however, the programme would represent a substantial commitment to shareholders and could strengthen Samsung’s appeal among investors looking for greater cash returns from the world’s major technology companies.

AI chip demand drives semiconductor earnings

The reported shareholder return plan comes at a time when Samsung’s semiconductor business is benefiting from rapidly increasing demand for AI infrastructure.

Data centres supporting generative AI applications require large quantities of advanced memory products, including high-bandwidth memory, commonly known as HBM.

HBM chips are used alongside powerful processors, particularly graphics processing units, to support the enormous data-processing requirements of modern AI systems.

The global expansion of AI infrastructure has therefore created strong demand for advanced memory products.

Samsung and SK Hynix are among the world’s major memory-chip manufacturers, putting both companies in a position to benefit from the increase in spending on AI data centres.

The semiconductor upcycle is consequently playing an important role in Samsung’s improved earnings outlook and its ability to consider larger shareholder distributions.

Special dividend could be part of the package

One of the most closely watched elements of the reported plan is the possibility of a special dividend.

Samsung’s existing shareholder return framework already includes regular dividends and provisions for additional returns when free cash flow allows.

The reported new programme could build on that approach by directing a significant portion of available cash towards investors.

According to NDTV Profit, the reported package is expected to focus primarily on cash payouts and special dividends rather than share buybacks. One reason cited in reports is the potential for regulatory complications involving Samsung affiliates such as Samsung Life Insurance and Samsung Fire & Marine Insurance.

A larger dividend-led strategy would allow Samsung to return substantial capital without relying entirely on an aggressive buyback programme.

Samsung’s existing shareholder return policy

The reported proposal comes as Samsung’s current shareholder return programme approaches the end of its three-year period.

Samsung’s existing framework for 2024-2026 calls for the company to return 50% of free cash flow over the period, while maintaining an annual regular dividend of 9.8 trillion won. The company’s value-enhancement plan also states that additional capital could be returned if the relevant free-cash-flow calculation creates surplus after regular dividends and other returns.

Samsung has also previously indicated that it intends to maintain a payout ratio of at least 20%, subject to investment requirements, future growth opportunities and cash-flow conditions.

The latest reports therefore suggest that the company could be preparing a substantial next step as its current shareholder return cycle nears completion.

Investors react positively to reports

Samsung’s shares responded strongly after reports of the potential shareholder return programme emerged.

According to NDTV Profit, Samsung’s Global Depositary Receipts rose 5.9%, while the company’s shares gained more than 10% at their intraday high during the trading session.

The market reaction reflects the potential significance of a 100 trillion won-plus capital return.

For investors, a large shareholder payout can increase the attractiveness of a company by providing direct cash returns while also signalling confidence in future cash generation.

The response also indicates that markets are closely watching how Samsung uses the stronger cash flows generated by the current semiconductor cycle.

SK Hynix has already announced a major return

Samsung’s reported plan also comes shortly after a major move by rival memory-chip manufacturer SK Hynix.

SK Hynix recently announced a 40 trillion won ($29 billion) share buyback and cancellation programme.

Reuters described it as the largest shareholder return policy disclosed by a publicly traded South Korean company at the time of the announcement.

SK Hynix has also committed to returning more than 50% of its free cash flow from 2025 through 2027.

The competing initiatives highlight the financial strength that major South Korean semiconductor companies are experiencing as AI- demand accelerates.

Samsung’s reported programme, if approved at the reported scale, would be significantly larger than the SK Hynix announcement.

Why HBM chips matter

HBM has become one of the most important products in the semiconductor industry because of its role in AI computing.

Traditional memory technologies are increasingly being supplemented by high-bandwidth solutions capable of moving large amounts of data rapidly between memory and processors.

AI accelerators require this high-speed memory to handle increasingly complex models and workloads.

As companies worldwide invest in AI data centres, demand for HBM has increased sharply.

That has created a significant opportunity for memory-chip manufacturers.

Samsung has been investing heavily to strengthen its position in the HBM market, while competitors such as SK Hynix are also expanding their production capabilities to meet demand.

The strong semiconductor cycle is therefore central to the financial backdrop behind the reported shareholder return plan.

Capital returns versus future investment

A major shareholder return programme also raises an important question for Samsung: how much capital should be distributed to investors and how much should be retained for future investment?

Samsung is simultaneously investing heavily in semiconductor capacity and future technologies.

Its corporate value-enhancement plan includes plans to invest more than 110 trillion won in facilities and research and development during 2026, with the objective of strengthening its position in the AI semiconductor era.

The company is also pursuing future growth opportunities in areas such as advanced robotics, medical technology, automotive electronics and heating, ventilation and air-conditioning businesses.

This means Samsung needs to balance shareholder returns with capital expenditure, research and development and potential acquisitions.

Special dividend could boost investor confidence

If Samsung does approve a large special dividend, it could have a broader effect on investor sentiment.

Technology companies that generate substantial free cash flow are increasingly under pressure to demonstrate how that cash will be used.

Returning excess capital to shareholders can help address concerns that cash is being accumulated without producing sufficient returns.

For Samsung, a major payout could also reinforce its efforts to improve corporate value.

The company’s existing shareholder return policies have already focused on maintaining dividends while investing for future growth.

A larger programme could signal that management believes the current semiconductor earnings cycle provides sufficient financial flexibility to return more money to investors.

Samsung has not confirmed the reports

Despite the market reaction, investors should note that the reported plan remains unconfirmed by Samsung Electronics.

NDTV Profit reported that Samsung has not officially confirmed the shareholder return programme.

The final size, structure and timing of any programme could therefore differ from the figures currently reported.

A formal board decision would be required before the reported strategy becomes an official company policy.

Until then, the 100 trillion won figure should be treated as a reported proposal rather than a confirmed payout.

What investors will watch next

The key upcoming event will be Samsung’s expected board meeting later in August.

Investors will be watching for clarity on several issues, including the total size of the programme, whether a special dividend will be declared and how Samsung plans to calculate the amount available for shareholder returns.

The company may also provide more information about the balance between dividends, buybacks and investments.

The outcome could have implications beyond Samsung because of the company’s enormous role in the global semiconductor supply chain.

A major moment for South Korea’s semiconductor sector

The reported Samsung programme reflects the broader transformation taking place in South Korea’s technology industry.

AI infrastructure has become a major source of demand for advanced semiconductors, strengthening the financial position of the country’s leading memory-chip manufacturers.

Both Samsung and SK Hynix are now benefiting from the same structural trend while competing aggressively for leadership in advanced memory.

Their willingness to return large sums of money to shareholders also suggests that investors could increasingly benefit from the industry’s strong cash generation.

Conclusion

Samsung Electronics is reportedly preparing a 100 trillion won-plus shareholder return programme, worth more than $72 billion, as strong AI and HBM chip demand boosts its semiconductor business.

The plan could include a special dividend and may allocate around half of Samsung’s free cash flow towards shareholder returns. The company is expected to consider the programme at a board meeting later in August, although Samsung has not officially confirmed the reported details.

The potential announcement comes shortly after SK Hynix unveiled a 40 trillion won shareholder return programme, highlighting the financial strength of South Korea’s semiconductor industry amid the global AI boom.

For Samsung, the challenge will be to balance generous shareholder returns with its substantial investment requirements in AI semiconductors, HBM, research and development and future growth businesses.

If the reported plan is approved, it would represent one of the largest shareholder return initiatives in South Korea and could further strengthen investor confidence in Samsung’s ability to generate cash from the ongoing AI-driven semiconductor cycle.