Samsung, the South Korean tech company, has announced that it was entering the cryptocurrency mining business and that it was launching the production of ASIC chips built specifically for mining digital currencies. These ASIC chips are designed to carry out one activity at a time, compared to other chips. This particular type of chip is mostly used for Bitcoin and Ethereum mining. Samsung is currently the world’s largest chip manufacturer and is looking to increase its dominance by joining the world of cryptocurrencies with this big move. It won’t be easy, as the South Korean giant is entering a very competitive market. One of the other big actors in the space is NVIDIA, a graphics card manufacturer that is very popular amongst gamers. There are multiple types of mining processors that each mine particular cryptocurrencies. Since processors are different, the necessary mining equipment varies for each currency. In that sense, Samsung will not directly compete with NVIDIA, since the latter is manufacturing GPU mining equipment and not ASIC mining equipment.
According to TechCrunch, someone from the company said “Samsung’s foundry business is currently engaged in the manufacturing of cryptocurrency mining chips” In order to be able to produce those chips, Samsung has reportedly partnered with Taiwanese company TSMC, a chip manufacturer. This company is also partnered with Bitmain, one of the most successful mining equipment retailer. The Bitmain Antminer S9 is their most popular model and is one of the most powerful bitcoin miner currently available on the market. Crypto mining is still relatively profitable depending on certain conditions. Electricity costs have to be low enough, and the mining power (usually in TH/s or GH/s) has to be as high as possible. Furthermore, the cost of the miner itself has to be taken into account, which usually fluctuates between $2,000 and $5,000.
Will cryptocurrency mining become standardized in the future? With large companies like Samsung joining this space, one can believe it will. In turn, this leads to another question: will it stay profitable to mine coins in the long run?
TLDR: Samsung, the South Korean tech giant, has announced that it is now manufacturing ASIC chips specifically built for cryptocurrency mining. These chips are particularly effective to mine Bitcoin or Ethereum.