Samsung is developing ASIC chips for cryptocurrency mining

Samsung has confirmed involvement in manufacturing cryptocurrency mining. However, the company told TechCrunch that it will not be disclosing its customers.

The confirmation follows allegations that the company was manufacturing the chips in partnership with unnamed Chinese dealer.

It means the company will rival with Taiwanese giant TSMC. TSMC manufactures ASIC  chips for China’s Bitmain and Canaan Creative. Last year, increase in crypto mining activity earned TSMC around $350-$400 million in the last quarter.

Also Read: TSMC: Cryptocurrency Mining Expelled, Third Quarter Revenue

It is likely that mining activity will increase this year. This will boost demand for Nvidia and AMD microchips. It is unclear the extent regulations will affect the activities around the world. Negative impacts could affect these companies negatively. However, TSMC said manufacturing chips for cryptocurrency mining was just an option and not the main business.

Sebastian Hou, an analyst with CL Securities Taiwan Co, said,

“Cryptocurrency is like a call option for TSMC, which is an attractive investment on its own. If mining demand vanishes tomorrow, it shouldn’t affect the investment outlook. But if it turns out to be strong, the company will rake it in”.

The two companies also compete in manufacturing chips for smartphones. Samsung reportedly ended Intel’s 25-year run as world’s biggest seller of chipsets. This is after posting a total revenue of $69 billion in 2017 compared to Intel’s $62.8 billion.

Read Next: Bitcoin mining projections in 2018
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Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.

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