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.
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.