Demand for cryptocurrency mining chips has been surging and both Samsung and AMD are seeing healthy returns in their balance sheets as a result. AMD have announced that cryptocurrency mining has made up 10% of all sales while Samsung have announced record profits for Q1 2018, after mass demand for cryptocurrency mining chips.
Cryptocurrency mining chips
News only surface back in January that Samsung were now making cryptocurrency mining chips, specifically, aiming to provide application-specific integrated circuits (ASICs). After seeing how much there was in this industry this decision is definitely one Samsung will be glad they made.
Samsung Electronics, the global giants based in South Korea have posted record profits for Q1 in 2018. Reporting an incredible 58% year-on-year growth. This huge increase is largely down to cryptocurrencies… more specifically, strong demand for cryptocurrency mining chips.
Robert M. Yi, Samsung’s executive vie president of investor relations, said during a financial earnings call that the profitability increase seen in the firm’s ‘semiconductor’ business played a significant role in setting a new quarterly operating profit record of 15.6 trillion Korean won ($14 billion).
“In the semiconductor business, the earning increases significantly year over year thanks to favorable market conditions driven by strong demands in server and graphic card memories as well as earning improvement in both the System LSI and Foundry businesses led by an increasing demand of chips used in flagship smartphones and cryptocurrency mining.”
While Samsung did not disclose precise figures for the mining chip side of the business, the figures do line up with the news that they announced back in January that they will be producing crypto mining chips
AMD have also estimated increased sales due to crypto mining chips. Lisa Su, the SEO of the global computer chips producer estimated that approximately 10% of their sales were due to cryptocurrency mining. Su explained how optimistic she was, regarding blockchain technology and AMD’ future in the blockchain industry.
“I do think the blockchain infrastructure is here to stay. I think there are numerous currencies. There are numerous applications that are using the blockchain technology. We don’t see a significant risk of secondhand GPUs coming into the market. I think what you find is that, one, there are number of different currencies, and, two, a lot of these users that are buying GPUs these days are actually buying them for multiple use cases, both commercial and consumer.”
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