Samsung and SK hynix accelerate massive share buybacks

Samsung Electronics and SK hynix are accelerating their massive share buyback programs, which are expected to conclude as early as mid-October, significantly ahead of the original November schedule. The combined buyback amount has reached approximately 34.7 trillion won. This rapid execution has provided critical liquidity support to the KOSPI, acting as a buffer against selling pressure from foreign and individual investors.

Market analysts express concern regarding a potential supply-demand gap in the Korean stock market once these major buying activities cease. The future direction of the semiconductor sector and the broader KOSPI will likely depend on upcoming third-quarter earnings reports and whether foreign investors return to the market.

Simultaneously, the semiconductor industry is reacting to shifting geopolitical and technological landscapes. US President Donald Trump has signaled a pro-growth stance toward the AI industry, aiming to maintain US leadership and avoid slowing development to benefit competitors like China. This sentiment has bolstered investor confidence in AI-related semiconductor stocks.

In the supply chain, Dongjin Semichem is preparing to begin production of semiconductor photoresist thinner at its facility in Killeen, Texas. This move supports the upcoming operations of Samsung Electronics’ Taylor foundry in the US, which is transitioning toward mass production of advanced nodes, including 2nm technology.