Samsung Electronics announced a potential shareholder return of up to 110 trillion won, or about $80 billion, for 2026. This record payout, more than five times its previous high in 2020, comes amidst a surge in chip demand fueled by the artificial intelligence boom, leading to significant earnings for the company.
The initiative follows pressure from investors to return a larger share of profits, a sentiment echoed by rival SK Hynix, which recently announced plans to buy back and cancel 40 trillion won ($28.6 billion) in treasury shares. Both companies have substantial net cash reserves that exceed those of major U.S. tech firms, and their shares have seen significant gains, with Samsung's surging 300% over the past year.
Samsung's shareholder return policy for 2024-2026 commits 50% of its free cash flow to shareholders. The company plans to consider cash dividends, share buybacks, and share cancellations for remaining payouts. This substantial return is expected to be funded by robust earnings, with Samsung reporting a more than 250-fold jump in chip profit to 89 trillion won in the second quarter. Despite these payouts, Samsung also plans to invest over 110 trillion won in facilities and R&D in 2026 to strengthen its position in advanced semiconductor technologies like HBM.
