Key Takeaways:
- Samsung Electronics plans a KRW90 trillion share buyback
- Hong Kong-listed chip stocks surge, with XL2CSOPSMSN up 11.23%
- SK Hynix reportedly preparing ADR-linked issuance for US listing
Back
Samsung plans KRW90 trillion buyback as chip stocks rally across Asia
Samsung Electronics plans a share buyback worth about KRW90 trillion, sending semiconductor stocks surging across Asian markets.
"The buyback shows strong confidence in Samsung's cash flow and capital allocation," a person familiar with the matter told Yonhap.
Hong Kong-listed chip stocks rallied sharply. XL2CSOPSMSN (07747.HK) jumped 11.23%, while XL2CSOPHYNIX (07709.HK) gained 7.89%. SMIC (00981.HK) rose 3.53% to HKD80.6, HUA HONG GRACE (01347.HK) added 4.45% to HKD173.7, and both MONTAGE TECH (06809.HK) and GIGADEVICE (03986.HK) climbed more than 3%.
The buyback, equivalent to roughly 4.5% of Samsung's market capitalization, comes as the memory chip giant faces intensifying competition from SK Hynix, which recently overtook Samsung as South Korea's most valuable company. SK Hynix is separately preparing to submit a new share issuance linked to ADRs to South Korea's Financial Supervisory Service, with a potential US listing expected to complete in July, according to reports.
The move aligns with a bullish outlook on memory chips. Morgan Stanley raised its price target on Micron Technology to USD1,050 and on Sandisk to USD1,750, citing memory supply constraints expected to last at least two to three years. Goldman Sachs raised South Korea's 2026 real GDP growth forecast to 2.7%, saying the country is riding stronger, more durable AI tailwinds.
The KRW90 trillion buyback signals Samsung management expects sustained cash generation despite competitive pressure from SK Hynix. Investors will watch for further details on the buyback timeline and whether SK Hynix's US listing proceeds as planned in July.
This article is for informational purposes only and does not constitute investment advice.
