Gross Revenues For Samsung Thanks To ASIC Miners

Gross Revenues For Samsung Thanks To ASIC Miners

Cryptocurrencies bring profit not only to those who trade them but to giant tech companies as well. And it seems that Samsung knows how to cash in on the trend. The technology manufacturer realized the great potential of cryptocurrency mining and thus started to produce ASIC miners.

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Cryptocurrencies bring profit not only to those who trade them but to giant tech companies as well. And it seems that Samsung knows how to cash in on the trend. The technology manufacturer realized the great potential of cryptocurrency mining and thus started to produce ASIC miners.

The investments are already paying off because the revenue for the first quarter of 2018 is tremendous. Samsung declared that a large portion of the operating income is due to the great demand for cryptocurrency mining chips. This could only come as good news because the smartphone business is not doing that well.

In the first quarter of the year, the Korean company has generated $14.45 billion operating profit. Robert M. Yi from the investments department at Samsung explained what exactly is going on:

“In the semiconductor business, earnings increased significantly year-over-year thanks to favorable memory market conditions driven by a strong demand for server and graphic memory as well as earnings improvements in both System LSI and foundry businesses led by increasing demand for chips used in flagship smartphones and cryptocurrency mining.”

SeWon Chun of Samsung’s semiconductor department added saying, “for graphics … total demand increased thanks to strong demand from graphics cards and cryptocurrency mining.”

Furthermore, the Korean heavyweight deems the “increased for high-performance computing chips” for the gross earnings in Q1. This suggests that in Q2 that the demand for high-performing chips will be increased. This is why Samsung will try to “diversify the consumer base”. Q2 might, in fact, prove a cornerstone for the company’s foundry business because the expansion of cryptocurrency mining is significant especially in Japan, South Korea, and China. Nevertheless, the “weak smartphone market” remains a burden.

When speaking of ASIC miners we know that Samsung supplies Halong Mining. However, its bitterest rival in the sector Taiwan Semi is still going strong. The Taiwanese company supplies some of the biggest players in the industry such as Bitmain and Canaan Creative. According to Tech Crunch, Taiwan Semi sold ASIC miners worth roughly $450 million in Q1.

In the meantime, privacy-oriented cryptocurrencies like Monero are openly fighting against ASIC miners. The ASIC war is on, you decide on which side you will stand.