Samsung Electronics Co., trading as SSNLF, said it will repurchase 2.5 trillion won (approximately $1.73 billion) of its own shares to bolster its employee and executive compensation program. The company plans to acquire shares through a combination of open-market purchases and block trades, with the buyback scheduled to conclude by the end of the third quarter. This move follows SSNLF’s policy to retain top talent in its semiconductor and consumer electronics divisions and is projected to reduce outstanding shares by roughly 0.4%, enhancing earnings per share metrics for the coming fiscal year.

Speaking exclusively from the Consumer Electronics Show in Las Vegas, SSNLF President Wonjin Lee highlighted that continuing shortages in dynamic random-access memory (DRAM) and NAND flash components are driving up production costs across the electronics sector. Lee projected that average selling prices for high-density memory modules could rise by 10–15% in the first half of the year, squeezing margins for device makers. He also noted that SSNLF is ramping capital expenditure by 20% year-over-year to expand its 5nm and 3nm fabrication capacity, aiming to mitigate supply constraints and capture premium pricing fueled by demand for AI and data-center applications.

Analysts forecast that SSNLF will flag a dramatic 160% year-over-year jump in fourth-quarter operating profit, driven by a severe global chip shortage that has pushed memory chip prices to record levels. Revenue from the semiconductor division is expected to hit a quarterly record, accounting for more than 50% of total group sales. SSNLF’s fab utilization rate reportedly exceeded 95% in Q4, and the company’s supply-chain management team has secured long-term contracts with major cloud service providers. Investors will be watching for the official earnings release later this month to confirm whether these projections translate into free cash flow growth and a potential dividend hike.