Samsung Electronics and SK Hynix said on Aug. 5 they are preparing to expand shareholder returns as record cash generation from the artificial-intelligence chip boom strengthens their financial positions.
In statements provided to Reuters, Samsung said it is exploring ways to increase shareholder returns while maintaining a strong balance sheet to manage industry cycles and finance future growth initiatives.
The company said it remains committed to preserving financial flexibility while pursuing a sustainable expansion of shareholder returns.
SK Hynix said it plans to unveil a detailed shareholder return program by the end of the year and expects to deliver a meaningful increase in payouts to investors.
The memory-chip maker said record cash generation has given it the capacity to boost shareholder returns while continuing to invest in growth and maintain a healthy financial position. It added that it is evaluating multiple options for additional capital returns.
Samsung previously said during its July 30 second-quarter earnings presentation that its board and management were actively discussing this year’s shareholder return policy, including the possibility of a special dividend, as well as a new capital return framework for future years.
SK Hynix has also said it is reviewing additional methods of returning capital to shareholders.
The stronger commitment to shareholder returns follows a sharp recovery in earnings driven by robust demand for high-bandwidth memory and other advanced chips used in artificial intelligence.
Samsung reported second-quarter operating profit of approximately $64.5 billion, an increase of 1,813.8% from a year earlier. SK Hynix posted operating profit of about $43.6 billion, up 557.2% year over year.
