Memory chip makers return cash to shareholders
The article discusses how the two leading memory chip manufacturers, Samsung Electronics and SK Hynix, are increasing shareholder returns through share buybacks and dividends, supported by high demand for artificial intelligence and long-term contracts that reduce market volatility. The companies are generating increasing cash flows as demand for AI presses on memory supplies, and TrendForce forecasts that NAND flash contract prices could rise by up to 63% in the second quarter of 2026, despite a decline in stock prices following their peak. Long-term contracts are used to improve demand sustainability and reduce profit fluctuations, enhancing the appeal of the stocks and attracting investors, amid ongoing growth in the chip industry and strong South Korean exports.
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