Samsung's now making chips designed for cryptocurrency mining
Samsung’s semiconductor business is booming, with the company recently overtaking Intel as the world’s biggest chipmaker. But the South Korean firm is not resting on its laurels, and is currently looking to expand into the buzziest contemporary market for processors: cryptocurrency mining.
As reported by TechCrunch, Samsung has confirmed it’s in the process of making hardware specially designed for mining cryptocurrencies like Bitcoin and Ethereum. A spokesperson for the firm told TechCrunch: “Samsung’s foundry business is currently engaged in the manufacturing of cryptocurrency mining chips. However we are unable to disclose further details regarding our customers.”
These chips are known as ASICs, or application-specific integrated circuits. ASICs are processors that have been specially designed for a single computational task, as opposed to the multi-purpose processors we use in computers and phones.
As the valuation of cryptocurrencies has shot up, so has the demand for these sorts of chips. In the case of Bitcoin, the currency is created by solving mathematical problems, with these calculations also maintaining the integrity of Bitcoin transactions. As more bitcoins are mined, these math problems become increasingly difficult. This has led to miners moving on from using normal integrated graphics cards, to GPUs designed for gaming, and now to specially-built ASICs.
It’s not clear exactly what sort of products Samsung will be making, but according to reports from Korean media, it’ll be working with Taiwanese firm TSMC. The company currently supplies chips for a number of companies set up solely to mine cryptocurrencies, including the China-based Bitmain. Meeting the demand for these chips has added around $350 million to $400 million to its quarterly revenue, says TSMC.
That’s nothing to be sniffed at, but it’s a small sum compared to the $69 billion created annually by Samsung’s chip business. Mining cryptocurrencies is buzzy, but that doesn’t mean it’ll be profitable for those selling silicon shovels and pickaxes.
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