Samsung Electronics has been on a decline in recent months, hitting a four-year low of 49,900 won on Thursday amid concerns that US President-elect Donald Trump could eliminate chip incentives. The decline is also due to disappointing earnings and a negative outlook for the global semiconductor industry under the incoming Trump government. The world's largest memory chip maker SK hynix Inc. is taking on its local rival SK hynix in the high bandwidth memory (HBM) segment. Has lagged behind. HBM chips are in high demand due to their important role in AI computing.
AI chip giant Nvidia Corp. to its latest fifth generation
HBM3E Its plans to supply the products have been delayed due to quality concerns. On Friday, Samsung Electronics announced a 10 trillion-won share buyback plan over the next 12 months to boost its share price. On Friday, Samsung jumped 7.21 percent to close at 53,500 won. It plans to cancel 3 trillion won of them within the next three months.
Meanwhile, Samsung will buy back a combined 10 trillion won ($7.16 billion) worth of its shares over the next year in efforts to boost its shareholder value following a recent decline in its share price. In the buyback plan approved by the board of directors, a total of 3 trillion won of shares will be bought back within three months starting on Monday and continuing through Feb. 17, the company said in a statement. As for the remaining 7 trillion won, the company will decide on how and when to use them with a view to enhancing shareholder value at subsequent board meetings.
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