Samsung Will Start Making ASIC Chips For Cryptocurrency Mining!
Samsung is already the world's largest chip manufacturer after overtaking Intel and it is gunning for a piece of the cryptocurrency pie with their ASIC chips.
Hot on the heels of the news of Facebook banning Cryptocurrency ads on their platforms, comes this news, which is at the other end of the spectrum. As the craze for cryptocurrency continues to grow, everyone on the planet is trying their hand at it. With big companies banking on cryptocurrencies, South Korean tech giant Samsung is the latest to join the bandwagon.
Samsung is getting in on the cryptocurrency business, and will now manufacture ASIC chips which are designed specifically for mining those precious cryptocurrencies like Bitcoins, Litecoins, NEM tokens, or Dogecoins. Recently, after beating Intel to become world’s largest chip manufacturer, the company is now looking to muscle its way into the cryptocurrency mining industry.
A Korean site originally reported the news. Samsung has confirmed that they will soon start manufacturing ASIC mining chips. The production will take place in collaboration with an unnamed China-based cryptocurrency mining equipment manufacturer, who will also be distributing the hardware for Samsung.
Samsung Chips For Cryptocurrency Mining
Samsung has been working on its 10-nanometer 16GB GDDR6 DRAM chips which have better power efficiency and have been specially designed to increase GPU performance. These chips can also be used for mining cryptocurrency.
This isn’t the first time the South Korean company has shown an interest in the business of cryptocurrency mining. Back in October 2017, Samsung showed off a bitcoin mining cluster which consisted of 40 Galaxy S5 handsets as part of their upcycling initiative.
Samsung will be a very serious competitor to Chinese companies such as Bitmain, Canaan and the US-based Bitfury. These companies specialize in producing ASIC (Application-Specific Integrated Circuits) chips, which are specifically designed to mine the Bitcoin and other cryptocurrencies.
At present Chinese company, Bitmain is the industry leader when it comes to crypto-mining chips and hardware. Bitmain has over 70% of the market share, where it and Canaan Creative use Taiwan-based company TSMC to manufacture the mining chips and hardware.
TSMC recently added around $350 million to $400 million to their quarterly revenue amidst the recent bitcoin surge. Samsung said it expects its foundry arm to be at least at “number two” in the business behind the Taiwanese giant.
Crypto-Mining – The Internet Gold
New Bitcoins can only be created by the process of mining, where the networked computers solve a complicated math problem, which, at the same time powers the Bitcoin’s payment network. The process may differ, but other cryptocurrencies use similar processes for creating new coins.
Anyone can mine Bitcoin by using their home computer. But with Bitcoin gaining popularity, the mining process has automatically increased in difficulty and has now reached such levels where one can mine serious bitcoins only with ASICs.
Crypto-mining is a profitable business, and Samsung being world’s largest chip maker wants to exploit the space.
Samsung has booked an incredible $69 billion in chip sales in 2017 which helped the company to become the largest chipmaker in the world, thanks to its smartphone industry and widespread business.