ISLAMABAD: Samsung Electronics has announced the cancellation of 3.05 trillion won ($2.11 billion) worth of shares it had previously acquired, as disclosed in a regulatory filing.
Additionally, the company revealed in a separate filing that it plans to buy back 2.7 trillion won worth of common shares and 304 billion won worth of other shares between February 19 and May 16, 2025. This move aims to enhance shareholder value and benefit its employees.
Last November, Samsung had announced its intention to repurchase shares worth 10 trillion won over the span of a year, following its underperformance in share price relative to competitors like SK Hynix. This marked Samsung’s first share buyback since 2017.
However, on January 31, Samsung warned of weaker-than-expected sales for its AI chips in the current quarter, citing US export restrictions on China and its efforts to launch a new version of its high-end chips.
While advanced AI chips have been a strong point for the struggling memory chip market, Samsung has faced difficulties in meeting Nvidia’s high-bandwidth memory (HBM) chip requirements. SK Hynix has emerged as Nvidia’s main supplier for HBM chips used in AI GPUs, leaving Samsung at a disadvantage.
Moreover, in December, the US imposed further restrictions on China’s semiconductor industry, including curbing HBM chip sales. With analysts suggesting that Samsung, which relies on Chinese customers for approximately 20% of its HBM sales, could be significantly impacted, the company faces a more challenging road ahead than its competitors.
