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Samsung S2 foundry

Samsung is currently the top chipmaker in the earth, and it'southward quietly expanding into a new market place: cryptocurrency mining. Samsung isn't mining coins itself, simply it is using its massive manufacturing capacity to produce so-called "application specific integrated circuits," or ASIC chips, for utilize in mining rigs. These chips are designed just to mine coins, making them vastly more efficient than a stack of GPUs.

Cryptocurrencies have different features, values, and management features, just nigh all of them tin be mined. To mine coins, your machine has to complete complex mathematical calculations as "proof of piece of work." This computing power goes toward processing transactions on the crypto's network, and in return you are rewarded with a small amount of the currency. However, the calculations get more difficult over fourth dimension, and that means you need more powerful and efficient ways to mine it.

Bitcoin has long since passed the indicate you can profitably mine it at dwelling — fifty-fifty a behemothic rig of GPUs won't accept enough ability to recoup for the electricity you utilise. This happens to every cryptocurrency eventually, but ASIC chips can proceed a mining functioning profitable. Thus far, most ASIC chips have been designed by Chinese firms Bitmain and Canaan Creative, both of which work with Taiwanese fabrication company TSMC. The entry of Samsung, with its impressive manufacturing chapters into this space, could upend the market.

An ASIC Bitcoin miner.

Samsung has confirmed it's working on cryptocurrency mining chips, but it refuses to discuss its specific partners. Previous reports claim it's a Chinese firm, which would brand sense. The depression cost of electricity in that location has made it a hub of cryptocurrency mining. The unnamed partner would demand to buy a substantial number of chips to affect Samsung'southward bottom line. The company brought in $69 billion in flake sales final year, well-nigh of which were used in smartphones. That was the largest chunk of its acquirement; even more smartphone sales.

Having more ASIC hardware on the market place certainly won't hurt, though. The cost of consumer GPUs is through the roof right now because miners are buying them up to accrue newer cryptocurrencies in hopes of hitting information technology rich when they accept off. Although, it's unknown whether Samsung'due south mystery partner plans to sell ASIC hardware or only use it in a private mining operation. Most consumer ASIC devices have been failures, but recent increases in crypto value might plow that tendency around. Perchance you'll be able to become a GPU for retail price someday.