Samsung Revenues Increase Due to Rising Demand For Cryptocurrency Mining
Samsung, the largest conglomerate in South Korea and one of the world’s biggest electronics manufacturer, revealed in a recent conference call that the company’s foundry business and semi-conductor department recorded increase in earnings due to the rising demand for cryptocurrency mining globally.
Rapidly Increasing Demand For Mining
Earlier this year, Samsung announced that it has officially begun the development and manufacturing of cryptocurrency ASIC miners. It secured a strategic partnership with a mining chip distributor in China and has been manufacturing ASIC mining chips ever since with a primary target market in Asia.
In January of this year, Samsung spokesperson said:
“Samsung is operating a foundry that supplies a Chinese cryptocurrency mining firm with mining equipment and ASIC chips. Since Samsung has just begun its cryptocurrency mining venture, it is unsure of the revenues it can generate from it.”
At the time, Samsung Securities analyst Hwang Min-seong told local media outlets that the company expects to increase the revenues of its foundry and semi-conductor businesses by manufacturing ASIC miners and entering an exponentially growing industry in cryptocurrency.
“Samsung Electronics could increase its revenues through ASIC chip manufacturing but because the foundry only accounts for a small portion of the company’s semi-conductor manufacturing plant, it is difficult to predict that the firm’s mining venture will have a significant impact on the company’s revenues,” Hwang explained.
Several sources have said that Samsung has been supplying Halong Mining, a cryptocurrency mining equipment distributor in China that is considered to be the only competitor of Bitmain, since January. CoinKorea and a few local media outlets have reported that Samsung’s foundry business has been directly collaborating with Halong Mining. However, neither Halong Mining and Samsung have officially confirmed the partnership.
Although the intricacies of the ASIC mining chip manufacturing venture of Samsung remain undisclosed, Samsung said that entering the cryptocurrency mining industry allowed its foundry business to significantly increase its revenues and said that the company expects the cryptocurrency market and the mining industry to continue their exponential growth.
Samsung emphasized that it will continue to service the cryptocurrency mining industry by introducing new low-power chips and technologies that could optimize cryptocurrency mining.
Why is Demand Increasing?
Earlier this month, several reports have suggested that the demand for cryptocurrency mining is increasing in South Korea because investors have discovered mining cryptocurrencies like bitcoin and Ethereum is cheaper than investing or buying the cryptocurrencies.
The facilitate the rapidly increasing demand, local computer manufacturers in South Korea have started to manufacture and commercialize CPUs with high performance GPUs that are optimized and built to mine cryptocurrencies efficiently.
Jooyeon Tech, one of the country’s most widely recognized computer manufacturers, said:
“The demand for cryptocurrency mining CPUs is increasing in South Korea because domestic computer manufacturers have entered the space and it has become easier for users to repair and modify their mining rigs. A portion of the users are also mining newly introduced cryptocurrencies, expecting them to substantially increase in value n the long-term.”