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SK Hynix Announces Massive ₩40 Trillion Share Buyback and Cancellation
SK Hynix held a board meeting on August 19 and resolved to purchase 24.07 million common shares on the open market and cancel all of them. If carried out as planned, approximately 3.3% of the company’s total outstanding shares will be eliminated. The planned cancellation is valued at ₩40.00434 trillion, making it the largest share buyback cancellation ever carried out by a listed company in South Korea.
The company will also expand its shareholder-return policy, which had previously been set at “within 50% of cumulative free cash flow (FCF)”, to “50% or more.” SK Hynix plans to combine share buybacks and cancellations with cash dividends, while also considering additional dividend increases, including fixed and special dividends.
The shares to be acquired represent approximately 3.3% of SK Hynix’s 730.492 million outstanding common shares. If all 24.07 million shares are cancelled, the number of outstanding shares would, by simple calculation, fall to approximately 706.422 million.
The company will purchase the shares on the open market over approximately three months, from August 20 to November 19. SK Securities will act as the investment broker handling the purchases. Once the acquisition is completed, the purchased shares will be cancelled in a single transaction. The exact cancellation date has not yet been determined.
The figure of 24.07 million shares was calculated based on SK Hynix’s closing share price of ₩1.662 million on August 18, the day before the board resolution, to match the planned cancellation amount of ₩40.00434 trillion. Because the share price may change during the acquisition period, the final number of shares purchased and the actual cancellation amount may differ. SK Hynix said it will disclose the exact number of shares cancelled through a corrected filing after completing the purchases.
The cancellation will be carried out pursuant to the proviso to Article 343(1) of Korea’s Commercial Act, which allows treasury shares acquired within the limits of distributable profits to be cancelled. Although the total number of issued shares will decline, the company’s capital will not decrease because the par value per share remains ₩5,000.
SK Hynix explained that it decided on the large-scale buyback and cancellation because it believes the company’s intrinsic value—based on its business competitiveness, cash-generation capacity and long-term growth prospects—is not sufficiently reflected in its current share price.
The company is continuing to post record results, driven by growing demand for artificial-intelligence (AI) memory. As of the end of the second quarter, SK Hynix had approximately ₩69 trillion in net cash. Net cash is calculated by subtracting borrowings from cash and cash equivalents and serves as an indicator of the company’s financial capacity to fund share buybacks.
The decision also represents an early implementation of SK Hynix’s 2025–2027 shareholder-return policy. In November 2024, the company announced that it would return up to 50% of cumulative FCF over the three-year period to shareholders. At the time, it said that if improved business performance significantly increased FCF, it could accelerate shareholder returns before the end of the policy period.
FCF is the cash remaining after a company deducts capital expenditures and other operating expenditures from the cash generated through its business operations. It can be used for dividends, share buybacks and cancellations, debt repayment and other purposes, making it an important indicator of a company’s capacity to return capital to shareholders.
Through Wednesday’s announcement, SK Hynix raised its shareholder-return target from “within 50% of cumulative FCF” to “50% or more.” In addition to the ₩40 trillion share buyback and cancellation, the company intends to continue paying cash dividends.
SK Hynix is also considering ways to increase dividends, including fixed and special dividends. The specific size and structure of additional shareholder returns will be determined by the board after considering cash flow during the policy period, market conditions and distributable profits. The company plans to provide further details around the time it announces its third-quarter results.
Who’s more regarded: the “there’s not enough leverage left to pump” crowd, or Koreans buying SK Hynix ADRs instead of the actual Korean shares?
According to CNBC, Korean retail investors net-bought around $4.5B of U.S. stocks in July, with a huge chunk going into semiconductors and leveraged ETFs.
The funniest part: SK Hynix ADRs were one of the most popular buys, even though Koreans can simply buy SK Hynix shares in Korea. The ADR was reportedly trading at roughly a 10% premium to the underlying Korean shares.
So what’s more degen?
Thinking the market needs even more leverage to keep pumping
Paying a ~10% premium to buy the exact same SK Hynix exposure through the U.S. ADR
Korean retail investors really said: “If there’s a cheaper version of the same stock available, I don’t want it.” 💀
@spez, if you consider using the buyback when the stock is trading around what you believe to be its fair value, why not use it when insiders are selling massive positions?
That would send a strong signal to reassure investors who believe in the project that the stock isn’t overvalued rather than making them feel like they should dump their shares too.
Investor confidence also comes from the signals you send.
August 18, 2026
Samsung and SK Hynix see NAND revenue surge in Q2, ranking #1 and #2 in market share
Samsung Electronics and SK Hynix saw their NAND flash revenue jump by 70% and 90%, respectively, quarter-over-quarter in Q2, securing the first and second positions in market share. The increase was driven by strong demand for AI servers and enterprise SSDs.
According to TrendForce, AI server demand remained strong in Q2, particularly for enterprise SSDs, leading to supply shortages across the NAND flash market.
As a result of the supply shortage, semiconductor companies significantly increased average selling prices (ASP) during contract negotiations. Combined revenue among the top five NAND flash manufacturers increased 77% QoQ to $68.87 billion.
NAND flash is a type of non-volatile memory that retains data even when power is turned off. It is mainly used in smartphones, PCs, and SSDs for data centers. Increasing storage capacity while processing data quickly and reliably is a key competitive factor.
Samsung: revenue up 71%, 29.3% market share
Samsung benefited from higher NAND ASPs driven by AI server demand, as well as a larger proportion of enterprise SSD shipments, significantly improving profitability.
Samsung's Q2 NAND flash revenue reached approximately $23.06 billion, up 70.7% QoQ. However, because competitors grew even faster, Samsung's market share fell slightly to 29.3%.
SK Hynix and Solidigm ranked second combined. Increased production using the 321-layer NAND process, strong orders for Solidigm's high-capacity QLC enterprise SSDs, and higher ASPs all contributed to the increase.
SK Hynix and Solidigm's combined NAND flash revenue increased 89.5% QoQ to approximately $14.27 billion.
Micron's NAND revenue jumps 99%, moving into third place
Micron significantly raised its ASPs, generating approximately $11.85 billion in NAND flash revenue in Q2. That represents a 99.2% QoQ increase, the strongest growth among the top five manufacturers, moving Micron into third place in the market.
Kioxia ranked fourth. Higher NAND prices and increased production of its BiCS8 technology improved both revenue and profitability. Q2 revenue reached approximately $10.72 billion, up 79.9% QoQ, while its market share declined slightly to 13.6%.
SanDisk also benefited from higher ASPs driven by AI demand, although its bit shipment growth was relatively limited. Q2 revenue was approximately $8.97 billion, up 50.7% QoQ.
TrendForce expects smartphone and PC demand to remain weak in Q3 as higher component costs lead to higher product prices. In contrast, demand for enterprise SSDs used in AI servers is expected to remain strong.
TrendForce also noted that memory manufacturers are prioritizing capital expenditure toward DRAM and HBM, limiting the expansion of new NAND production capacity. This should continue to support NAND prices and could drive further revenue growth for the industry in Q3 as NAND ASPs continue to rise.
"US presses Apple to avoid Chinese memory chips amid shortage - WSJ reports"
SK hynix Chairman Chey Tae-won: “We’re Willing to Build a U.S. Memory Fab”
SK Group Chairman Chey Tae-won has confirmed that SK hynix is open to building a front-end memory semiconductor manufacturing facility in the United States, although the company has not yet found the right location.
In an interview with CNBC published August 13, Chey said SK has been reviewing potential sites in the U.S. and other regions for more than a month. The key criteria are not just power, water, and land, but also the surrounding semiconductor ecosystem.
The main driver behind the potential U.S. investment is the rapidly growing demand for AI memory.
Chey expects next year to be the most severe year for memory shortages, saying that customers are requesting almost 2x the amount of memory for next year compared with this year, while memory manufacturers have not yet prepared enough additional capacity.
«“Everyone wants memory, but without memory, you cannot produce AI computing systems or AI chips.”»
He described the situation as being “like a war.”
Chey also warned about “chipflation” — rising memory prices pushing up the prices of finished products. He said memory prices have become so high that companies such as Apple may have no choice but to raise product prices, potentially contributing to broader inflation.
Because of this expected demand, SK hynix plans to double its production capacity over the next five years.
Even more strikingly, Chey expects the amount of memory production capacity required over the next 10 years to reach roughly 5x today’s level.
When asked about SK hynix’s competitive advantages over companies such as Samsung Electronics and Micron, Chey pointed to the company’s organizational culture.
He emphasized that SK hynix spent more than a decade under creditor management, which left the company “really hungry.” According to Chey, its fighting spirit and teamwork are what differentiate SK hynix from its competitors.
So, in short:
- 🇺🇸 U.S. memory fab: willing to build one, location still under review
- 🔎 Potential sites: U.S. + other regions, reviewed for 1+ month
- 💧 Location criteria: power, water, land + semiconductor ecosystem
- 🤖 AI memory demand: customers requesting almost 2x next year’s supply vs. this year
- 📈 SK hynix capacity target: 2x over the next 5 years
- 🚀 Longer-term industry demand: ~5x current capacity needed over 10 years
- 💰 Concern: “chipflation” and higher consumer prices
- 🥊 Competitive advantage: fighting spirit + teamwork
This is a pretty significant statement considering how aggressively SK hynix is already preparing for the next wave of AI-driven memory demand.
🚀 Reddit Added to the S&P 500?! 🚀
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Samsung Electronics & SK Hynix: up to ₩300T in shareholder returns?
Samsung Electronics and SK Hynix are reportedly preparing major new shareholder-return programs, with announcements expected in Q3 2026.
Here are the numbers being discussed:
🇰🇷 Samsung Electronics
- Current annual shareholder return: ₩9.8T
- Analysts estimate a new annual return of ₩100–200T
- That would be 10x+ the current level
- KB Securities price target: ₩600,000
- Samsung could return 50% of cumulative FCF under its current 2024–2026 policy
- Analysts estimate 2027–2029 cumulative FCF could exceed ₩600T
🇰🇷 SK Hynix
- Current fixed annual dividend: ₩1,500/share
- Shareholder returns are based on 50% of cumulative FCF for 2025–2027
- Analysts estimate ₩70–80T could remain available even after keeping ₩100T as a cash buffer
- Around ₩40T in additional shareholder returns could therefore be possible
- Some estimates put the maximum potential return at ₩100T
💰 Combined potential: up to ₩300T
For context, ₩300T is roughly $200B+, depending on the exchange rate.
The reason this matters is that earnings alone may no longer be enough to push the stocks higher. Both companies have reported record AI-driven memory profits, yet as of August 13, Samsung was still 26.1% below its June high, while SK Hynix was 45.4% below its high.
The stocks have recently rebounded on expectations of these shareholder-return announcements.
The big question:
if Samsung actually announces ₩100–200T and SK Hynix approaches ₩100T, could this trigger another major rally?
Obviously, these are analyst estimates, not confirmed payouts. The actual numbers could be much lower.
SK hynix bond investment move
Interesting development regarding SK hynix today.
According to a Korean report from ChosunBiz, SK hynix unexpectedly cancelled part of its planned purchases of credit bonds on August 10, just one day before the bonds were scheduled to be issued.
This is particularly interesting because SK hynix has significantly increased its bond investments this year, reportedly purchasing around KRW 20 trillion ($14–15bn) of high-quality credit bonds, mainly AA-rated or higher. The company’s cash and cash equivalents reportedly reached KRW 88 trillion at the end of Q2, up KRW 33.6 trillion in just three months.
The timing has led some in the market to speculate that SK hynix could be adjusting its cash management strategy ahead of additional shareholder returns. The company has already announced a quarterly dividend of KRW 375 per share and said it plans to announce additional shareholder returns during Q3, potentially through dividends or share buybacks/cancellations.
That said, I wouldn’t read too much into a single cancelled bond purchase. SK hynix says it is still honouring all investment commitments that it has formally agreed to. Some analysts also believe this could simply be a one-off adjustment in its treasury management rather than a major change in capital allocation strategy.
Still, given the sheer amount of cash SK hynix is accumulating, I find the way it allocates that cash increasingly interesting. The next shareholder-return announcement could give us a better indication of management’s priorities.
Source: ChosunBiz, August 13, 2026.
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SK Hynix’s HBM4 pricing may be much higher than expected
A new report from Korean outlet iNews24, citing U.S. investment bank Cantor, suggests that SK Hynix’s HBM4 pricing is significantly higher than some recent market rumors indicated.
According to people Cantor spoke with at FMS 2026 in Santa Clara, HBM4 supply remains extremely tight, with much of next year’s capacity reportedly already sold out.
Reported HBM4 pricing
Cantor reportedly heard the following prices for SK Hynix HBM4:
NVIDIA: ~$32 per GB, or $4 per Gb
Broadcom: ~$36 per GB, or $4.50 per Gb
AMD: ~$40 per GB, or $5 per Gb
That is considerably higher than some recent speculation that SK Hynix might offer NVIDIA HBM4 at around $2–$3 per Gb in order to defend its market share against Samsung and Micron.
If Cantor's information is accurate, SK Hynix appears to be retaining significantly more pricing power than the market expected.
HBM supply may be the real bottleneck
Another interesting point concerns NVIDIA's upcoming Rubin Ultra GPUs.
There has been speculation that NVIDIA's preference for 8-high HBM stacks over 12-high stacks could indicate weaker HBM demand.
Cantor reportedly heard the opposite explanation at FMS:
NVIDIA may be using fewer HBM layers not because it needs less HBM, but because there simply isn't enough supply.
The reasoning is that NVIDIA wants to maintain GPU shipments of roughly 15 million units, making 8-high HBM configurations preferable from a supply standpoint.
And it's not just HBM
Cantor also reportedly heard that the broader memory market remains tight.
Some industry executives reportedly believe memory demand growth could exceed supply growth by 5–10 percentage points for an extended period.
Interestingly, the fact that smartphones and PCs are shipping with less memory may not necessarily mean demand is weakening. According to the report, manufacturers may simply be reducing memory configurations because they cannot secure enough memory at the required volumes.
NAND also appears stronger than some recent forecasts suggested. Cantor reportedly found no clear signs of demand deterioration and heard that NAND ASPs could rise by around 5% in Q4 2026.
Bottom line
The market has recently been pricing in a potential memory-cycle peak within the next couple of quarters.
The picture coming out of FMS 2026 appears quite different:
HBM4 supply remains constrained, SK Hynix may be achieving much higher prices than expected, and broader DRAM/NAND demand may still be strong.
If these reports are accurate, the biggest question may not be “When does the memory cycle peak?” but rather:
“How long can the industry keep up with AI-driven memory demand?”
Source: iNews24 / Cantor, August 13, 2026.
Samsung & SK hynix: “Extremely Undervalued — Shareholder Returns Could Be the Catalyst for a Re-Rating”
KB Securities report — August 13, 2026
Samsung Electronics and SK hynix have recently seen their share prices fall sharply, bringing their 2027 forward P/E ratios down to around 3x. With memory earnings expected to surge as the semiconductor cycle improves, KB Securities argues that both companies are now in an “extremely undervalued” range and could be due for a major valuation re-rating.
As of the August 12 close, Samsung was trading at roughly 3.7x 2027 earnings, while SK hynix was at around 3.2x.
KB Securities expects 2027 operating profit to reach approximately ₩575T for Samsung and ₩389T for SK hynix, representing a massive increase from 2025 levels.
The firm also expects record-breaking results to continue into Q3:
Samsung: ₩112T operating profit, up 817% YoY, with a 55% operating margin.
SK hynix: ₩77T operating profit, up 579% YoY, with a 78% operating margin.
KB Securities attributes the earnings surge to increasing demand from hyperscalers, long-term supply agreements, and rising memory prices. More than 60% of total memory production is reportedly already committed through long-term contracts.
Combined operating profit for Samsung and SK hynix is projected to rise from around ₩91T in 2025 to ₩641T in 2026, and potentially reach ₩964T in 2027.
Despite this, their combined market capitalization is currently around ₩2,593T, which KB Securities believes leaves significant room for a valuation re-rating.
Another potential catalyst is shareholder returns. The report argues that new shareholder-return policies expected from Samsung and SK hynix could trigger a re-rating similar to what has happened with TSMC.
For Samsung specifically, KB Securities estimates at least ₩600T in shareholder returns over the next three years, along with a potential dividend yield above 7%. The firm believes this could attract long-term capital from major sovereign wealth funds and global mega-funds.
TL;DR: Samsung and SK hynix have been heavily sold off, but KB Securities argues that their 2027 valuations are now extremely low relative to the expected earnings growth. Rising memory prices, long-term AI-related contracts, and potentially much higher shareholder returns could become major catalysts for a significant re-rating.
Korean government locks in local government cooperation to speed up semiconductor power supply
The Korean government has once again pledged to ensure timely electricity supply for the semiconductor industrial complexes planned in the Honam region and Yongin.
On August 12, the Ministry of Climate, Energy and Environment, Jeonnam-Gwangju Integrated Special City, KEPCO, Samsung Electronics, and SK Hynix signed an agreement aimed at accelerating power-grid construction and drastically shortening administrative procedures.
The government is particularly emphasizing cooperation from local authorities. In the past, construction of transmission infrastructure around the Pyeongtaek semiconductor complex was delayed by up to 21 years due to local opposition and insufficient cooperation from municipalities.
The challenge now is much bigger. The key transmission routes and construction schedules for the Honam semiconductor cluster have not yet been finalized, while Yongin will also require long-distance transmission lines to bring electricity from the east coast and central regions.
At the same time, planned AI data centers could require up to 18.4 GW by 2035. Combined with the semiconductor clusters, potential demand could reach roughly 38.4 GW.
Korea's transmission infrastructure is already struggling to keep up: between 2020 and 2026, power-generation capacity increased by 22.1%, while transmission-line capacity increased by only 4.4%.
Experts say the biggest obstacle will be local opposition to transmission towers and substations. Proposed solutions include dedicated government teams for negotiations and compensation, clearer compensation standards, and potentially undergrounding transmission lines in areas with particularly strong opposition—even though underground construction can cost around five times more.
The government is pushing for a much faster build-out, with Industry Minister Kim Jung-kwan saying that even completing the Honam semiconductor fabs in 2029–2030 would be too slow.
Bottom line: Korea is trying to accelerate the power infrastructure needed for its semiconductor + AI build-out, but the transmission grid and local permitting/acceptance could become the real bottleneck.
For SK Hynix and Samsung, this is potentially a very important infrastructure story to watch.
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[NOWnews Today] Global memory chip giant Micron Technology’s Taiwan operations have faced growing dissatisfaction among frontline workers over its performance bonuses and profit-sharing system. The union has recently been considering launching a strike and other collective labor actions in accordance with the law.
Taichung City Councilors Shih Chih-chang and Lin Chi-feng raised the issue during a city council session on the 12th, pointing out that Micron operates key production facilities in Houli and the Central Taiwan Science Park (CTSP) in Taichung. They said there should not be a situation in which “corporate profits reach record highs while workers’ pay becomes increasingly disconnected from those profits.” They called on the city’s Labor Affairs Bureau to closely monitor the situation and proactively intervene in mediation in order to stabilize the local industrial supply chain.
Shih Chih-chang said that while the city government is often enthusiastic about promoting its success in attracting major technology companies, it cannot treat workers’ demands for a fair share of corporate profits as merely an internal corporate matter. The Labor Affairs Bureau should not act only as a “cleanup crew after the fact.” Instead, it should proactively monitor labor disputes and activate mediation mechanisms, helping labor and management engage in equal negotiations. He also called for profit-sharing mechanisms and performance-bonus formulas to be institutionalized and incorporated into collective bargaining agreements, thereby fulfilling companies’ ESG social responsibilities and preventing strikes from affecting the local industrial supply chain and employment stability.
Shih also demanded that the Labor Affairs Bureau closely monitor whether management puts pressure on union officials or participating employees, transfers or demotes them, or retaliates against them through performance evaluations. Any illegal labor practices should be dealt with strictly, and legal assistance should be provided through the Labor Rights Protection Fund. He further suggested that when the city government evaluates future investment attraction projects, public-land leases, or tax incentives, it should look beyond the size of an investment. It should also establish a “good jobs” index that takes companies’ wage levels, profit-sharing systems, and union coverage rates into account. He stressed that the prestige of major technology companies should not be built on the grievances of workers.
The Taichung City Labor Affairs Bureau said that while matters concerning Micron’s labor-management relations fall under the jurisdiction of the Central Taiwan Science Park Bureau of the National Science and Technology Council, the city government has proactively contacted the CTSP Bureau in order to protect workers’ rights and has been closely communicating with Micron’s union to understand its concerns. The union is currently gathering internal opinions and is expected to begin negotiations with management after developing its proposals. The city government said it will continue monitoring the situation.
The Labor Affairs Bureau also noted that collective bargaining agreements can cover matters such as working conditions, employee benefits, and the sharing of corporate business results. As of the end of July 2026, two companies in Taichung had incorporated profit-sharing mechanisms into their collective bargaining agreements.
Since 2023, the city government has also provided legal consultations and on-site assistance from experts to help workers establish company unions. It will continue encouraging labor and management to establish institutionalized communication mechanisms through collective bargaining agreements, with the goal of protecting workers’ rights and maintaining stable labor-management relations.