Published: Thu, February 01, 2018
Finance | By Claude Patterson

Samsung makes crypto-currency chips

Samsung makes crypto-currency chips

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. These chips will be custom designed.

Notably, Samsung has recently overtaken Intel as the biggest seller of chipsets in the world.

The South Korean multinational electronics company, Samsung Electronics has revealed that it has ventured into the mass production of cryptocurrency mining chips. However, we are unable to disclose further details regarding our customers.

Samsung Electronic's fourth quarter net profit totalled 12.3tn won ($11.5bn; £8.1bn), which was roughly in line with analysts' expectations.

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. In the case of bitcoin, the currency is created by solving mathematical problems, with these calculations also maintaining the integrity of bitcoin transactions. The more such investments are made, the more confidence people have in cryptocurrencies and just like with fiat currencies, the greater the value thereof since the demand for them also increases.

The recent boom in Cryptocurrency mining has caused a shortage of GPUs in the market because the miners have been using as many GPUs as possible to mine bitcoins and other digital currencies.

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

It marks the first time the United States firm has not occupied the top spot since 1992, according to the Bloomberg news agency.

According to reports, Samsung has collaborated with an unknown Chinese distribution partner for manufacturing the chips. As more bitcoins are mined, these math problems become increasingly hard.

The firm is expecting that this decision would raise the revenue level of the company.

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