Samsung is now producing chips exclusively to harvest cryptocurrency
South Korea’s Samsung Electronics number crunchers have disclosed that the technology giant is now producing chips exclusively to harvest cryptocurrency coins. Samsung firmly believes this move will enhance profits in a big way.
The company’s 4th quarter net profit totalled $11.5 billion with its shares increasing by almost 9%. But Samsung will now split stock 50 to 1 to generate asset trade.
Mining Chips & Asic
Samsung have yet to reveal full details about their new cryptocurrency business but we know their foundry sector is now manufacturing cryptocurrency mining chips.
Mining Chips for cryptocurrencies actually means finding solutions to complicated mathematical problems. For this computer owners involved are recompensed with new digital tokens or coins.
The Korean language newspaper ‘The Bell’ have reported that the processors involved in this are Application Specific Integrated Circuit Chips (Asic). Custom designed single task chips for mining cryptocurrencies only. In the past Asic chips have been mainly associated with the television industry. But that changed in 2013 when selling processors, custom-designed for Bitcoin, hit the market.
What makes Asic technology more appealing is the increased price of high end, but difficult to come by in recent months, Graphic Processing Unit Chips (GPU).
Samsung, according to Bell, began mass production of their own Asic Bitcoin chips early this year joining the only other major player, Taiwan’s TSMC in this activity. Samsung’s entry into this market is a clear sign to many experts that Bitcoin’s increased value will continue.
Samsung Knocks Intel off Top Spot
Last year Samsungs semiconductors division recorded $69.6bn sales. Almost $7bn more than Intel making it the first year since 1992, according to Bloomberg New, that the US Company did not occupy ‘Top Spot.’