Samsung looks to get into cryptocurrency mining game with specially designed chips

Samsung looks to get into cryptocurrency mining game with specially designed chips

Samsung looks to get into cryptocurrency mining game with specially designed chips

Mining cryptocurrencies require a speedy, energy-efficient hardware which is the reason why Samsung has commissioned a special ASIC chip for mining operations.

The company will expand on the current chip products with its shift towards manufacturing processors for the crypto mining industry, Samsung said.

Mining is a process of solving mathematically complex problems that serve to verify the transactions of cryptocurrency coins. The company is now supplying several firms that are setup specifically for cryptocurrency mining, including the China-based Bitmain.

Earlier this month, Samsung had said it would likely report a record quarterly profit of US$14.1 billion, but the guidance fell short of consensus estimate at the time, sending shares down as investors anxious if this indicated that the memory chip boom could be ending sooner rather than later.

ASIC or application-specific integrated circuit chips are processors that have been manufactured with the completion of a specific task in mind, compared to the multitasking processors used in computers, smartphones and tablets. Initially, almost anyone could mine Bitcoin using his/her home computer. But as Bitcoin became more popular, the mining difficulty automatically increased, and has now reached such levels that one can only seriously mine with ASICs.

More news: International Olympic Committee issues conduct guide for Russian athletes

Samsung is already working on its 10-nanometer 16Gb GDDR6 DRAM chips.

Samsung has provided little information about its new crypto-currency business, although it did make the following statement in its earning release.

Mining is a profitable business, and it's no wonder that Samsung, the world's largest chip maker as of Jan 31, 2018, is looking to enter the space. The move comes as part of a collaboration with a Chinese distribution partner. 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.

It's too early to tell what sort of impact this could have on Samsung's bottom line.

Related news