SK hynix to raise dividends by 25% per share by 2027, riding AI chip boom

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SK hynix to raise dividends by 25% per share by 2027, riding AI chip boom

Published: 28 Nov. 2024, 10:17

SK hynix's headquarters [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 AI chip market.

As part of its new shareholder return program, the company will raise annual dividends to 1,500 won ($1.10) 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