SK Hynix Announces Massive Share Buyback, Driving Surge in Taiwan Memory Sector

SK Hynix (SKHY-US) announced yesterday that it will spend 40 trillion Korean won to repurchase its own shares, along with an expanded shareholder return program. This move boosted SK Hynix's American Depositary Receipts (ADR), while its shares listed in Korea surged nearly 15%. The positive sentiment spilled over to Taiwan's memory sector, lifting related stocks. Key player Nanya Technology (2408-TW) jumped 7%, reclaiming the 500 TWD mark, while other firms such as Winbond (2344-TW) posted gains of over 4%, showing particularly strong performance.

SK Hynix’s board approved a large-scale treasury stock acquisition and cancellation plan, allocating 40 trillion KRW—the largest such buyback in the history of South Korean listed companies. Foreign institutional investors have generally responded positively, highlighting their confidence in the company’s cash flow generation.

Nanya Technology also expressed optimism about the ongoing memory boom, expecting AI-driven structural transformation in the memory industry. It forecasts a persistent supply-demand gap, with shortages likely to continue for several quarters. Prices are expected to keep rising in the second half, and gross margins are projected to improve further.

Today, fueled by the positive news from SK Hynix, Nanya led the rally with a 7% surge. Lian-Horng (3135-TW) hit its daily trading limit, while Winbond, Etron (6531-TW), Apacer (8271-TW), Zhen Ding (8112-TW), and Formosa Chemicals & Fibre Technology (8131-TW) all rose more than 3%, reflecting robust buying interest.