SK Hynix is considering a shareholder-return program that could become the largest in its history, according to Korean media reports, as earnings and cash generation increase alongside demand for high-bandwidth memory used in artificial-intelligence systems.
The reported package could total about 100 trillion won ($69 billion), with roughly 40 trillion won potentially allocated to share repurchases. SK Hynix has not confirmed those figures or the final structure of the plan.
Will SK Hynix announce a share buyback worth at least KRW 40 trillion by September 30, 2026?
The company said separately that it is reviewing additional measures aimed at enhancing shareholder value and expects to announce details in the third quarter. It has also declared a second-quarter cash dividend of 375 won per share, with Aug. 31 set as the record date.
The discussions come after a sharp increase in SK Hynix’s earnings, driven largely by sales of high-bandwidth memory, or HBM. The chips are used in AI accelerators and servers supplied to data centers operated by major technology companies.
SK Hynix reported record second-quarter operating profit as revenue increased from a year earlier. The company has also continued to expand production of advanced DRAM products as customers increase investment in AI infrastructure.
Management said HBM4, its sixth-generation high-bandwidth memory product, is expected to contribute more meaningfully to shipments in the second half of the year. Advanced DRAM shipments are also expected to increase over the same period.
At the same time, SK Hynix is continuing to invest in additional capacity. Capital expenditure is expected to rise this year as the company expands production infrastructure for HBM and other advanced memory products.
A potential increase in shareholder distributions would therefore take place alongside continued spending on manufacturing capacity. The balance between investment, dividends and possible share repurchases will depend on the structure of the additional shareholder-return measures due to be announced in the third quarter.
