Samsung Electronics is mass producing chips – called application-specific integrated circuits (ASICs) for mining Bitcoin and other cryptocurrencies. Samsung which operates one of the world largest semiconductor manufacturing factory announced in its fourth-quarter earnings that it expects to boost earnings this year due to increased demand for cryptocurrency mining equipment.
A Samsung spokesperson told local media, “We are making progress with our foundry business that supplies to a virtual money mining company in China,”
Mining is a process of generating new Bitcoin and validating transactions on the bitcoin network, over the years specialist equipment and chipsets with higher computing powers have been introduced to the mining market to solve complex mathematical problems quicker. Samsung mining chips will be introduced in the Chinese market first before expanding to other regions that have a stronger demand for cryptocurrencies.
Despite a dip in the value of Bitcoin due to increased scrutiny from regulators, Samsung entering the Bitcoin mining market space follows Kodak cryptocurrency announcement at CES earlier this month. The iconic camera company is licensing its brand to Spotlite, which builds computers designed to mine bitcoin and also created KodakOne blockchain platform which is designed as means for photographers to secure digital rights management payments using a cryptocurrency called KodakCoin.