Samsung Starts Making Crypto-Currency Mining Chips

Samsung Starts Making Crypto-Currency Mining Chips


Chip makers like Samsung, South Korean rival SK Hynix and Intel have been riding a boom in sales of semiconductors as the world demands ever greater processing capacity to power data centres, high-tech smartphones and the blockchain ledgers behind cryptocurrencies.

The sharp rise in the prices of bitcoin and other cryptocurrencies over the past year has boosted interest in their mining.

This could make Samsung a very serious competitor to Chinese companies such as Bitmain, Canaan and the USA -based Bitfury.

Currently, the company is focusing on manufacturing of crypto-currency mining chips.

Samsung is the latest company to jump onto the cryptocurrency bandwagon according to a new report by The Bell. "However we are unable to disclose further details regarding our customers", a company spokesperson told TechCrunch.

The chips are known as ASICs, or application-specific integrated circuits.

The company said in a statement: "Samsung's foundry business is now engaged in the manufacturing of crypto-currency mining chips". Its foray into mining-specific hardware, which are much more efficient that GPUs, suggests that it's ready to play a bigger role in the booming cryptocurrency industry. GPUs are used to handle graphics on computers as well as being deployed for mining purposes.

Tech giant Samsung is branching out into the field of cryptocurrency mining.

Cryptocurrency fever has gripped the world this year, with bitcoin now trading roughly at $10,000, almost 10 times its price this time last year.

At present, the ASIC market is dominated by Bitmain and Canaan Creative, with both firms working out of China and in collaboration with Taiwanese firm TSMC.

Cryptocurrency mining is simply the validation of cryptocurrency transactions. Additionally, Samsung could add in more competition if it plans to create its own hardware, which it is financially capable of carrying out. In the latest financial report, which the company has posted this week, Samsung's full-year revenue totaled almost 240 trillion Korean won ($224 billion) in 2017.

Samsung is also getting in on the cryptocurrency business just like everyone else.

  • Terrell Bush