When it comes to returning cash to shareholders, anything SK Hynix can do, Samsung can do bigger

As demand far outstrips supply in the memory-chip market, SK Hynix and Samsung Electronics are generating outsize profits and throwing off huge free cash flow. Now both companies plan to return lots of this to shareholders

Samsung Electronics plans shareholder returns totaling 90 trillion won to 110 trillion won, including about 30 trillion won in third-quarter cash dividends.

"I am sure there are a lot of reasons [for the move], but I do think cash is a big one," said one insider.

The South Korean chipmaker's board approved repurchasing and canceling 40 trillion won of shares over three months starting Aug. 20