Mumbai: Samsung Electronics revealed plans to buy back shares worth 10 trillion won ($7.17 billion) over the next year to bolster shareholder value, Reuters reported citing a regulatory filing submitted after markets closed on Friday.

Initially, the company will buy back 50.14 million common shares and 6.91 million preferred shares, valued at three trillion won, over the next three months, the report said.

These shares will subsequently be cancelled, Samsung stated in a separate release.

The board will later determine how and when to use the remaining seven trillion won allocated for the buyback program.

This will be Samsung's first share buyback since 2017 when it repurchased shares worth 20.7 trillion won.

The announcement follows concerns over the company's semiconductor business, which reported a 40% quarter-on-quarter profit decline.

Last month, Samsung stated it would concentrate on high-end chip production and had made progress on a significant supply deal to address investor worries.

Following the news, Samsung's shares surged by 7.2% on Friday, marking their largest daily gain since March 2020.

Despite this recovery, the stock remains 32% lower year-to-date.