The Strategist

Samsung to produce chips for mining

01/31/2018 - 09:14

South Korean giant Samsung has started production of equipment for bitcoin mining and other crypto-currencies, CCN writes citing local media. The corporation owns one of the world's largest semiconductor manufacturing plants, which last year completed development of new chips for ASIC-miners. Mass production began in January, writes TheBell.

According to the publication, Samsung entered into an agreement with one of the Chinese manufacturers of equipment for bitcoin mining last year and has now completed the development of its own ASIC chip. It is China that is supposed to become the company’s first market to enter before a broader international presence.

In the future, the South Korean vendor plans to sell also in South Korea and Japan.

"Samsung is launching a production that is designed to provide hardware and ASIC chips to Chinese mining companies. Since Samsung is just starting to engage in this business, it's hard to say how much profit it will bring," the company spokesman said.

In the coming months, Samsung also expects to begin production of GPU-miners, intended for the production of smaller crypto-currencies.

At the moment, the only other major semiconductor manufacturer that has concluded a similar agreement with the manufacturer of equipment for mining, represented by Bitmain company, is the Taiwanese TSMC. In this regard, it is possible that Bitmain will become Samsung's main competitor in this sector.

Hwang Min-seong, an analyst at Samsung Securities, said that Samsung expects to increase its profits by selling equipment for the crypto currency. But while this business does not reach the international level, it is unlikely that it will affect the profitability of Samsung Electronics, he explained.