Samsung Profit Rises on the Back of Bitcoin Mining Chips

Samsung has experienced an impressive surge in its first quarter operations profit this year all thanks to Bitcoin mining chips. Compared to the first quarter of last year 2017, year-on-year (YoY) sales for Samsung grew by about 20% as the company recorded consolidated earnings of 60.56 trillion U.S Dollars, with operating profits coming to 15.64 trillion U.S Dollars. Operating profits increased by 58% in comparison to last year’s figure of 9.9 trillion U.S Dollars.

The company’s semi-conductor division is responsible for its Bitcoin mining chips production and according to the Seoul Newspaper, the division accounted for over 73% of total operating profit for the 2018 first quarter.

Samsung explains that;

“Demand for the semiconductor division increased due to sales of system LSIs [ASICs] for flagship smartphones and demand for virtual currency mining chips.”

In January this year, Samsung confirmed that it had begun manufacturing Bitcoin and other cryptocurrency mining chips. Even though much details were left out, a spokesperson for the company told Techcrunch that “Samsung’s foundry business is currently engaged in the manufacturing of cryptocurrency mining chips.”

Samsung offers design services which gets to connect companies in a B2B arrangement with qualified ASIC design services and support. In January also, Samsung launched its Advanced Foundry Ecosystem Program which aims to ensure a deep and intertwined connection between the Samsung foundry, ecosystem partners and customers.

One of the world’s prominent cryptocurrency mining rig manufacturers Halong Mining has previously revealed that its flagship product the Dragonmint T1 Miner makes use of Samsung’s 10nm T1558 mining chips. Halong Mining reports that these Samsung mining chips are some of the most efficient on the market.

It is believed that earning should continue to grow in the second quarter of 2018 due to increased demand for HPC-based semiconductors and expected increase in the supply of new 10nm process products.

Samsung electronics further states that;

“In the foundry business, despite a decline in demand for mobile parts due to seasonal weakness in the first quarter of 2018, earnings increased on the back of high-performance computing (HPC) chip orders.”