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Samsung Contracted With Ebang (Ebit) To Mass Produce Mining Chips

South Korean electronics giant Samsung has reportedly been contracted by an unnamed China-based firm to fabricate Bitcoin mining ASICs with massive production already kicking off in January. It is believed that the Chinese partnership is Ebang whose Ebit series are among the most popular mining rigs. As early as December 20, 2017, Ebang announced to release E10 18T miner with Samsung 10nm chips which could boost E10 hashrate to 18TH/S.

The bitcoin gold rush has heated the mining market, news flood in that GPU is out of stock once again, power supply tenses as a result of cryptocurrency mining. As the demand for mining gear mounting, new orders for bitcoin mining solutions are set to be a new driver of Samsung’s future profit growth.

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While chip maker giants as Intel, AMD and NVIDIA keep silent at it, indeed AMD and NVIDIA try to limit GPU sales to miners for the need of gamers comes first. The hunger for mining chips are increased in just these years, traditional chip maker giant like Intel has its own edged field and long-term layout, so it may not easily get into the mining sector without sound market survey and optimistic market expectation. Intel has been especially cautious since its failure in smartphone/tablet chips with billions of dollars invested. AMD and NVIDIA are indeed profiting from selling GPU chips to miners, but it seems they have no plan to produce customized chips for mining rigs.   

In stark contrast to that, mining market is almost monopolized by Chinese manufacturers, with the world’s top three mining rig makers – Bitmain, Canaan and Ebang all based in China. Their revenue reached billions of dollars by selling mining chips and rigs in 2017, and that was under the condition of constantly serious shortage! So it could have been more than ten times of that if the real demand was satisfied.

Both Bitmain and Canaan reportedly partner with Taiwan Semiconductor Manufacturing Company (TSMC) to manufacture mining chips. TSMC saw Canaan’s orders increase significantly in 2017 bringing an estimated CNY500 million to TSMC’s revenues for the year. And sources have it that TSMC has obtained sizable orders from Bitmain for 2018. According to TSMC, due to the great surge in demand for AISC mining chips in Q3 of 2017, the orders bring in $350-400 million, which may be equal to that of NVIDIA.

Thanks to mining chips, Bitmain leap to the second largest IC design factory in only 4 years. And TSMC’s first order in 2018 is said to mass produce 7nm processing chips for Bitmain, Qualcomm, NVIDIA, AMD and Hisilicon of Huawei.

Eyeing on the lucrative mining sector, Samsung joins the turbulent race to have a share with TSMC. TSMC’s position as a supplier to market giant Bitmain could see Samsung’s move provide a much-needed dose of competition in mining. As Ebang join hands with Samsung, could Bitmain continue its leading position in bitcoin mining?

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