Samsung Electronics is reinforcing its semiconductor leadership with new board appointments while simultaneously taking major financial steps to enhance shareholder value.
Company Adds Semiconductor Experts to Board Amid AI Chip Competition
On Tuesday, Samsung nominated key semiconductor experts to its board, including Jun Young-hyun, head of its chip business, and Chief Technology Officer Song Jai-hyuk. Additionally, Professor Lee Hyuk-Jae from Seoul National University, a semiconductor specialist and head of the university’s semiconductor research centre, has been proposed as an outside director.
These nominations come as Samsung works to regain its competitive edge in the semiconductor industry, particularly after losing its lead in high-bandwidth memory (HBM) chip used in Nvidia’s AI GPUs to domestic rival SK Hynix. The board appointments will be put to a vote at Samsung’s shareholders’ meeting on March 19.
$2.11 Billion Share Cancellation & Buyback Plan
Alongside its semiconductor strategy, Samsung is taking bold financial measures to support its stock value. The company announced the cancellation of 3.05 trillion won ($2.11 billion) worth of its own shares, a move aimed at boosting shareholder confidence.
The board of directors approved the retirement of 50.1 million common stocks and 6.91 million preferred stocks, set to take effect on Thursday. Additionally, Samsung will acquire an extra 3 trillion won in treasury shares between February 18 and May 16, purchasing 48.15 million common shares worth 2.7 trillion won and 6.63 million preferred shares worth 303.6 billion won.
Out of this amount:
- 500 billion won will be allocated as employee compensation
- 2.5 trillion won will be used to stabilize stock prices and enhance shareholder value
This follows Samsung’s 10 trillion won buyback program announced in November 2024, which aimed to address stock price volatility and competition in the AI chip sector. Despite this, Samsung’s shares have only gained 4.67% over three months, rising from 53,500 won to 56,000 won, closing at 56,900 won on Tuesday, up 1.61% from the previous day.
With these strategic board changes and financial decisions, Samsung is positioning itself to navigate the evolving semiconductor landscape while ensuring strong shareholder returns.