Samsung bitcoin mining rig could be available soon

Computer chips reason for Samsung's record profit

For readers information, Samsung is not making CPUs or GPUs for bitcoin mining, it is only making application-specific integrated circuit or ASIC chips.

Samsung is jumping into the craze for cryptocurrencies with the launch of a new hardware offering.

Chip makers like Samsung, South Korean rival SK Hynix and Intel have been riding a boom in sales of semiconductors as the world demands ever greater processing capacity to power data centres, high-tech smartphones and the blockchain ledgers behind cryptocurrencies.

These are chips that are custom-designed to carry out a single task (i.e mining) and are not used for any other computing requirements. These companies specialise in producing ASICs (application-specific integrated circuits), chips explicitly created to mine Bitcoin and other cryptocurrencies.

Samsung are rumoured to be fabricating cryptocurrency mining ASIC chips for an unnamed Chinese distribution partner. The mobile division did not do as well in the fourth quarter, because it suffered a small operational loss, particularly because Samsung spent a lot more to market its smartphones.

The company is said to have completed the process for the development of ASICs for bitcoin mining previous year. The move is aimed at boosting the firm's profits.

Mining rig
Samsung jumps on cryptocurrency bandwagon as giant reveals plans to create mining chips

The company says that a specific devision within its semiconductor business called Foundry will head up the project.

Kwon Young Choi, the vice president of Samsung's display unit, brushed off reports that Apple will cut iPhone X production for the first three months of the year amid soft sales, saying the screen business was not dependent on any one client.

The company's involvement in mining can lead up to serious competition for the existing industry leaders.

Demand for memory chips got strong past year due to the spread of new mobile devices and more usage of big data, which requires more memory chips.

Cryptocurrency mining requires powerful computers that are capable of solving complex mathematical problems.

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.

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