[Photo Credit: Reuters]

Samsung Electronics (005930.KS), opens new tab will hold a board meeting on Friday afternoon to ​discuss a new shareholder return package, a person familiar with the matter ‌said, after media reports put the plan’s worth at more than $70 billion.

Samsung, which like rival SK Hynix (000660.KS), opens new tab, has seen earnings soar as the AI boom creates insatiable demand for chips, is ​expected to discuss special dividends as well as share buybacks and cancellations.

It ​is set to announce a new shareholder return package later this month ⁠worth more than 100 trillion won ($72 billion), South Korea’s MoneyToday reported.

The source, who ​declined to be identified as the plans were confidential, said the package could be ​worth a significant amount but did not give further details. A company spokesperson declined to comment.

Both Samsung, the world’s top memory chipmaker, and SK Hynix have been under much pressure to return gains ​to shareholders given their record-breaking profits.

SK Hynix said this week it will buy back ​and cancel 40 trillion won ($28.6 billion) of treasury shares and allocate more than 50% of its ‌free ⁠cash flow generated between 2025 and 2027 to boost shareholder returns.

Under its 2024 to 2026 shareholder return policy, Samsung commits 50% of three-year free cash flow to shareholders.

Earnings gains have been stupendous.

In the second quarter, Samsung reported a more than 250-fold jump ​in chip profit to ​89 trillion won. Its ⁠shares have surged 300% over the past 12 months but have come off a record high in June amid concerns that ​AI spending could slow.

Samsung and SK Hynix are set to ​hold a ⁠combined $263 billion in net cash by the year’s end. That is more than double the estimated $102 billion of AI bellwether Nvidia (NVDA.O), opens new tab and exceeds the combined cash of the other ⁠six “Magnificent ​Seven” U.S. tech companies, LSEG data and Reuters ​calculations show.

On Friday, Samsung shares gained 3.5% while SK Hynix’s stock climbed 4.4%. The wider market (.KS11), opens new tab was up ​0.8%.