SK Hynix to Announce Shareholder Return Plans With Q3 Results

SK Hynix will announce shareholder-return measures with its third-quarter results on October 28, but the company has not confirmed a reported plan for a special dividend of about 16 trillion won, or roughly US$12 billion. The South Korean chipmaker said it is reviewing various ways to return value to shareholders after a newspaper report said it was considering the payout. That report said the dividend could be funded by gains from selling a stake in Japanese memory-chip maker Kioxia. SK Hynix has not disclosed the sale’s financial details or confirmed the proposed dividend, its amount or its funding. The announcement is expected alongside the company’s third-quarter results. SK Hynix said in August it would buy back and cancel 40 trillion won of its shares and devote more than 50% of free cash flow generated from 2025 to 2027 to shareholder returns. It also said it would consider special dividends and additional share buybacks and cancellations. The reported proposal comes amid pressure on chipmakers to return more cash after strong profits from demand for artificial-intelligence memory chips. Investors have also weighed concerns about the durability of technology companies’...