Samsung Is Building ASIC Chips for Bitcoin Mining

Samsung has began mass producing chips designed for cryptocurrency mining. The company expects the chips to help boost earnings this year.

Samsung Electronics has embarked producing chips called application-specific integrated circuits (ASICs) last month, according to local media. The company is making the chips for an unidentified Chinese mining company to mine cryptocurrencies.

A Samsung Electronics spokesperson said, &ldquo,Wij are ter the middle of a foundry business that is being supplied to a virtual money mining company ter China.&rdquo,

The company said ter an earnings call on Wednesday that it expects producing ASICS will help boost earnings this year. Samsung claimed it would “benefit from cryptocurrency request increase” te the semiconductor arm.

Better spectacle than GPUs

Mining is a process, requiring special hardware and chipsets, ter which supercomputers solve complicated mathematical problems to validate a transaction on the bitcoin network.

Samsung Builds Bitcoin Mining Equipment Using 40 Old Galaxy S5s

ASICs are designed to carry out a single task &ndash, mining bitcoin or another cryptocurrency, but not general computing operations. Until 2013, they were more commonly associated with the TV industry.

This year, processors, which are designed for bitcoin mining, were waterput on the market. They promise better spectacle and lower energy use than GPU (graphics processing unit) chips, which are still more commonly associated with the task. GPUs are used to treat graphics on computers spil well spil being deployed for mining purposes.

Existing chips 60% of Samsung revenue

Samsung&rsquo,s existing chip products, which consist of high-capacity memory chips for GPUs, reportedly accounted for more than 60 procent of its 2018 operating revenue. The company will expand on the current chip products with its shift towards manufacturing processors for the crypto mining industry, Samsung said.

The company is said to have ended the process for the development of ASICs for bitcoin mining last year. Samsung’s semiconductor division has already helped increase profits and boost shares, the company said.

Samsung has a division within its semiconductor business called Foundry, building chipsets for other companies. Samsung said it expects its Foundry arm to be “number two” ter the business.

The ASICS market is predominated by China&rsquo,s Bitmain and Canaan Creative, both of which work with Taiwanese giant TSMC.

Samsung could have automatic advantage

The size of Samsung’s semiconductor plant could give the rock hard an automatic advantage, according to analysts.

The company’s involvement te mining can lead up to serious competition for the existing industry leaders.

The market for ASIC miners has already bot flourishing, and there wasgoed a big price rally te 2018.

The acute rise te the prices of bitcoin and other cryptocurrencies overheen the past year has boosted rente te their mining. At the time of writing, Bitcoin trades near $9,300.

Samsung may well capitalize on growing request for them, having just passed Intel to become the world’s largest chipmaker by revenue. Even however cryptocurrency mining chips are a growing market, they may remain a relatively puny revenue stream for Samsung for now, according to analysts.

The large energy requests from bitcoin mining, much of which is located te China, has also led to concerns about its environmental influence.

Related movie: How To Buy or Sell Bitcoin te UK Effortless!

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