Samsung set to become first South Korean company with $147 billion in cash assets

Samsung Electronics is on course to become the first South Korean company to cross the 200 trillion won ($146.6 billion) mark in cash assets, buoyed by a surge in demand for artificial intelligence (AI) chips and a global semiconductor upcycle, industry data showed on Sunday.

The world's largest memory chipmaker is estimated to have held 214.8 trillion won in cash and cash equivalents at the end of the third quarter, an increase of 24.8 trillion won from the 190 trillion won reported three months earlier.

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Its cash reserves have nearly doubled from the 108.5 trillion won recorded at the end of the September quarter last year, Yonhap news agency reported.

Samsung's total assets also climbed to 791.8 trillion won by the end of September, marking a rise of 32.4 trillion won over the preceding quarter.

The company's growing cash reserves could provide sufficient resources to meet its planned shareholder payouts for 2026, market watchers estimate. Samsung had announced in August that it would make between 90 trillion won and 110 trillion won available for shareholder returns next year under its capital return policy.

At the same time, the company is preparing to ramp up spending on semiconductor manufacturing and research. Investments in chipmaking infrastructure and research and development are expected to exceed 100 trillion won this year, a record for the company. Of this, 84.4 trillion won is earmarked for expanding memory production capacity.

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Samsung expects the semiconductor upcycle to extend into next year, supported by continued investment in AI and tight supplies of memory chips. The company is scheduled to unveil its shareholder return policy for the coming year at a board meeting in January.

The cash accumulation comes as the company's earnings benefit from surging demand for AI-related semiconductors. Samsung's net profit for the July-September quarter rose more than sixfold year-on-year to 75.13 trillion won ($56.2 billion), compared with 12.22 trillion won in the corresponding period last year.

The 514.6% increase in net profit was disclosed in a regulatory filing by the company.

With inputs from agencies