Samsung Electronics wants to do more in the Bitcoin mining business.
The company announced this week that it has concluded a foundry contract with a China Bitcoin mining hardware maker. It has reportedly started mass production.
The specifics of the deal include Samsung developing the semiconductor called ASIC, or Application Specific Integrated Circuit, to mine Bitcoins.
TSMC, Taiwan, is the foundry maker that is benefiting from Samsung’s Bitcoin mining operations, according to reports. China mining company BitMain is one of these, and it is the largest mining company in the world.
“Taiwan TSMC is supplying semiconductor ASIC for mining to major mining company BitMain. In the foundry business, Samsung Electronics is early to discuss the effects of the increase in revenues due to the increase in demand related to bit coin sales.” – The Bell According to a Samsung statement:
"We are in the middle of a foundry business that is being supplied to a virtual money mining company in China."
Bitcoin mining requires high-speed, energy-efficient hardware. As a result, companies that mine Bitcoins in large quantities have favored the ASIC chips. These chips are in demand because they can be developed in a way that’s ideal for doing the mining. They can handle the high speeds needed for mining the tokens in an energy efficient way.
China has become an ideal place for mining cryptocurrencies because of the low costs of electricity in the country.
We told you earlier this month about how mining operations in China are facing trouble after the country began its crackdown on their activities due to electrical grid consumption issues.
China’s internet finance regulator earlier this month issued a memo to local governments encouraging them to push their miners to make an “orderly exit” from their activities in their respective regions.
According to The Bell, “Samsung Electronics has been attracting attention not only for its foundry business, but also for mass production of DRAM for graphics card, which is suitable for virtual money mining.”
In addition to mining Bitcoins through the use of ASIC, Samsung is reportedly planning to tap the GPU-based cryptocurrency mining space.