SK Hynix is said to plan $12B special dividend from Kioxia investment

SK Hynix (SKHY) is preparing to distribute approximately 16 trillion won ($12 billion) to shareholders through a special dividend funded by gains from its investment in Japanese memory-chip maker Kioxia Holdings (KXIAY)(KXHCF), South Korea's DongA Ilbo newspaper reported Monday.

The proposed payout would represent about 80% of the estimated 20 trillion won in gains generated from selling down its Kioxia investment during the first half of 2026. SK Hynix (SKHY) is expected to announce the dividend alongside its third-quarter earnings on Oct. 28, according to the newspaper, which cited unidentified investment banking sources. The company declined to comment.

For investors, the potential dividend would provide a substantial one-time cash return while highlighting the value SK Hynix (SKHY) realized from its investment in a rival memory-chip producer. The distribution could also bolster shareholder confidence as semiconductor stocks face growing scrutiny over valuations and spending tied to artificial intelligence.

SK Hynix (SKHY) participated in a Bain Capital-led consortium that acquired Toshiba's former memory-chip business for $18 billion in 2018. The investment appreciated significantly following Kioxia's Tokyo stock-market debut in 2024 and a subsequent rally in its shares.

Bain Capital exited its Kioxia investment earlier this year, while SK Hynix has retained convertible bonds linked to an investment vehicle holding approximately 14% of Kioxia. The South Korean chipmaker has not publicly disclosed the size of its realized gain or confirmed plans for a special dividend.

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