SK Hynix Boosts Dividend Payout Amid AI Chip Market Success
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On Wed, 27 Nov, 4:03 PM UTC
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SK hynix to increase dividend payouts by 25% per share by 2027
SK hynix logo is displayed at the company's booth at SEDEX 2024 semiconductor exhibition at COEX, southern Seoul, Oct. 24. Yonhap SK hynix on Wednesday announced plans to increase dividend payouts by 25 percent per share by 2027 as part of a broader strategy to boost corporate value amid the chipmaker's rapid growth in the artificial intelligence (AI) chip market. As part of its new shareholder return program, the company will raise annual dividends to 1,500 won ($1.08) per share over the next three years, up from the current 1,200 won. This will result in a total annual dividend payout of approximately 1 trillion won, SK hynix said. SK hynix said the value-up program represents an increase in corporate value in recent successful years. "Our goal is to promote the company's long-term prosperity together with our shareholders by carrying out policies for shareholder return that match the company's growth and the stability of its financial structure," said Kim Woo-hyun, vice president and chief financial officer at SK hynix, in a statement. In the face of the AI boom, SK hynix has been rapidly expanding its presence in high bandwidth memory (HBM), a key component for AI accelerators. Its latest HBM3E products are currently supplied to U.S. AI chip giant Nvidia, solidifying its leadership position in the industry over its rival Samsung Electronics. (Yonhap)
[2]
SK hynix to increase dividend payouts by 25% per share by 2027
SK hynix logo is displayed at the company's booth at SEDEX 2024 semiconductor exhibition at COEX, southern Seoul, Oct. 24. Yonhap SK hynix on Wednesday announced plans to increase dividend payouts by 25 percent per share by 2027 as part of a broader strategy to boost corporate value amid the chipmaker's rapid growth in the artificial intelligence (AI) chip market. As part of its new shareholder return program, the company will raise annual dividends to 1,500 won ($1.08) per share over the next three years, up from the current 1,200 won. This will result in a total annual dividend payout of approximately 1 trillion won, SK hynix said. SK hynix said the value-up program represents an increase in corporate value in recent successful years. "Our goal is to promote the company's long-term prosperity together with our shareholders by carrying out policies for shareholder return that match the company's growth and the stability of its financial structure," said Kim Woo-hyun, vice president and chief financial officer at SK hynix, in a statement. In the face of the AI boom, SK hynix has been rapidly expanding its presence in high bandwidth memory (HBM), a key component for AI accelerators. Its latest HBM3E products are currently supplied to U.S. AI chip giant Nvidia, solidifying its leadership position in the industry over its rival Samsung Electronics. (Yonhap)
[3]
SK Hynix Hikes Dividend Payout to $2.1 Billion as AI Lead Widens
SK Hynix Inc. plans to raise its dividend payout by 25% to roughly $2.1 billion from 2025 to 2027, reflecting the rapid growth it's undergone since staking out a lead in the market for AI memory chips. The Korean company pledged Wednesday to pay out 1,500 won a share in dividends over the next three years, equating to about 1 trillion won ($720 million) annually. And it left open the possibility of an earlier return for shareholders should the business outperform.
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SK Hynix announces a 25% increase in dividend payouts by 2027, reflecting its growth in the AI chip market. The company plans to raise annual dividends to 1,500 won per share, totaling approximately 1 trillion won annually.
SK Hynix Announces Significant Dividend Increase
SK Hynix, a leading South Korean chipmaker, has unveiled plans to substantially increase its dividend payouts by 25% per share by 2027. This strategic move comes as part of a broader initiative to enhance corporate value, capitalizing on the company's rapid growth in the artificial intelligence (AI) chip market 12.
Details of the Dividend Increase
Under the new shareholder return program, SK Hynix will raise its annual dividends from the current 1,200 won to 1,500 won ($1.08) per share over the next three years. This increase will result in a total annual dividend payout of approximately 1 trillion won ($720 million) 12. The company has also indicated the possibility of an earlier return for shareholders if business performance exceeds expectations 3.
Rationale Behind the Decision
Kim Woo-hyun, Vice President and Chief Financial Officer at SK Hynix, explained the motivation behind this move: "Our goal is to promote the company's long-term prosperity together with our shareholders by carrying out policies for shareholder return that match the company's growth and the stability of its financial structure" 12.
SK Hynix's Position in the AI Chip Market
The dividend increase reflects SK Hynix's recent success and growing prominence in the AI chip market. The company has been rapidly expanding its presence in high bandwidth memory (HBM), a crucial component for AI accelerators 12.
Competitive Edge in HBM Production
SK Hynix has solidified its leadership position in the industry, particularly in relation to its rival Samsung Electronics. The company's latest HBM3E products are currently being supplied to U.S. AI chip giant Nvidia, further cementing its status as a key player in the AI chip supply chain 12.
Implications for the Future
This strategic move by SK Hynix not only rewards its shareholders but also signals the company's confidence in its future growth prospects. As the demand for AI chips continues to surge, SK Hynix's strong position in the HBM market could potentially lead to further expansion and market dominance in the coming years.
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SK hynix Surpasses Samsung in Quarterly Profit, Driven by AI Chip Demand
SK hynix reports record-breaking earnings for Q4 2024 and the entire year, outperforming Samsung Electronics in quarterly profit for the first time. The success is attributed to strong demand for AI memory chips, particularly high bandwidth memory (HBM).
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SK Hynix Reports Highest Profit in 6 Years Amid AI Boom
SK Hynix, a major supplier to Nvidia, has posted its highest quarterly profit in six years, driven by the surging demand for AI chips. This marks a significant turnaround for the memory chip industry, which had been struggling with oversupply and weak demand.
11 Sources
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SK Hynix Shares Soar as Mass Production of Advanced AI Chips Begins
SK Hynix, a major supplier to Nvidia, has started mass production of its advanced HBM3E memory chips, causing its stock to surge. This development comes amid growing demand for AI-related semiconductors and positive industry outlook.
6 Sources
6 Sources
SK hynix Surpasses Samsung in Quarterly Profit, Driven by AI Memory Chip Demand
SK hynix outperforms Samsung Electronics in quarterly profit for the first time, fueled by strong sales of AI-specific high bandwidth memory chips. The company plans to double its HBM sales and mass-produce next-generation chips in 2025.
2 Sources
2 Sources
SK Hynix Reports Record Q3 2024 Profits Driven by AI Memory Demand
SK Hynix, a leading memory chipmaker, posts record-breaking Q3 2024 financial results, with explosive growth in AI memory sales, particularly HBM. The company's success is attributed to the booming AI server market and its strong position in supplying critical components to major AI companies.
14 Sources
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