Samsung has confirmed that it has begun manufacturing ASIC (Application Specific Integrated Circuit) chips which are used to mine bitcoin, ether and other cryptocurrencies
Samsung’s semiconductor business is booming, with the company recently overtaking Intel as the world’s biggest chipmaker.
Samsung has confirmed that it has begun manufacturing ASIC (Application Specific Integrated Circuit) chips which are used to mine bitcoin, ether and other cryptocurrencies.
“Samsung’s foundry business is currently engaged in the manufacturing of cryptocurrency mining chips. However we are unable to disclose further details regarding our customers,” a company spokesperson told TechCrunch.
Samsung began producing the ASIC, which is an on-demand semiconductor designed to optimize Bitcoin mining. Mining the cryptocurrency has become increasingly expensive as completing hash links in the blockchain consumes more computing power. In order to be profitable, high-speed, energy-efficient hardware is necessary. Large-scale Bitcoin mining operations have commissioned dedicated ASIC chips tailored to their mining operations.
Samsung declined to provide more details when we asked.
The statement follows reports in Korean media which claimed that the tech giant had made the move in collaboration with an unnamed Chinese distribution partner. Samsung already produces high-capacity memory chips for GPUs, which are conventionally used to handle graphics on computers but are also deployed for mining purposes.
Samsung’s shift toward manufacturing processors for the crypto mining industry marks an expansion of its existing chip products, which reportedly accounted for more than 60 percent of its 2017 operating revenue.
By building chips with cryptocurrency mining in mind, Samsung could not only tap into an emerging market but also have a dedicated product for the task, thereby avoiding companies from snapping up its other chips and repurposing them into crypto farms and causing the price of said chips to balloon out of hand.
But for Samsung, cryptocurrency mining looks to be a boon for it. And it may be wise to move into other markets as Apple is apparently slicing production of the iPhone X which Samsung provides displays for and make a bucket load of cash from, thereby posing a risk to Samsung’s revenue.