It is not just blockchain technology that is being adopted by corporations all over the world, but the crypto fever is also getting to them by the looks of it.
As per local news sources, South Korean tech giant Samsung will be manufacturing ASIC (application specific integrated circuit) chips that are used for mining cryptocurrencies.
This move came not long after Samsung surpassed Intel to claim the spot as the world’s largest seller of chipsets.
Details on the development
It is important that Samsung has partnered with a cryptocurrency mining hardware manufacturer in China to start making its own ASIC chips.
While more details were not provided by the company on the development, a source from Samsung confirmed to local news platforms that the company’s foundry was indeed carrying out manufacturing processes for cryptocurrency mining chips.
However, the official stated that they would not be able to disclose further details regarding the operations, at least for now.
Samsung already manufactures GPU chips that are an integral part of gaming computers, which are also used by miners for small cryptocurrency operations.
Effects this might have on the current mining operations
Samsung currently has one of the largest and advanced semiconductor manufacturing plants in the world, which has not only helped its own products, such as its line of cellphones – but has the company supply manufacturing elements to its counterparts and competitors.
Samsung is currently the sole supplier for Apple’s iPhone X OLED screens, mostly because it is the only company that can meet such a high demand while also maintaining the quality desired from these high-end cellphones.
It is likely that Samsung will leverage from these operations to establish itself as the primary provider for ASIC chips as well.
This would also bring Samsung in direct competition to TSMC, a Taiwan based semiconductor manufacturer which works in collaboration with Bitmain, a Chinese company that runs one of the most significant cryptocurrency mining operations in the world.
However, Samsung is not the only big corporation to have expanded into ASIC mining chip manufacturing to increase the competition for the aforementioned companies.
In December 2017, Japanese conglomerate GMO Internet had announced that it would be launching its own ASIC chip manufacturing and cryptocurrency mining operations. The company has already secured a location in Europe and plans to have its full-fledged operations start very soon.
With corporations such as Samsung joining in the cryptocurrency industry – even indirectly – this could lead to initiate a whole new industry segment in its own right.
At the moment, individual miners have to spend a large amount of money without any earnings to ensure that they can run a mining computer on their own, as most of the time, these miners only get paid for the work that they perform and not for the equipment that they need to execute these operations.
While ASIC chips or the related equipment would still not come cheap, with bigger corporations churning them out on a commercial or retail level, there could be a significant difference in their price which would make owning a mining machine somewhat affordable for individual miners.
Whereas, for mining corporations, it would make a massive difference in equipment costs as compared to generated revenue.