Samsung is Reportedly Working on Chips for Cryptocurrency Mining

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Taiwanese company TSMC, which makes chips for Bitmain and Creative, added $350-400 million in revenue in the last quarter from the crypto-mining business alone.

Samsung is the latest company to jump onto the cryptocurrency bandwagon according to a new report by The Bell.

"We are making progress with our foundry business that supplies to a virtual money mining company in China", said Samsung in the interview.

South Korean tech giant Samsung has announced that it's developing hardware specially designed for cryptocurrency mining.

For the full year profit rose to KRW 42.19 trillion (£27.6bn) from KRW 22.73 trillion (£14.9bn).

Its shares also jumped almost nine per cent after the company revealed that it was splitting its stock 50-to-1.

Given how useful specific GPUs are when it comes to cryptocurrency mining, many high-end PC graphics cards are hard to hunt down right now, or have skyrocketed in cost.

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Still, Samsung Electronics said its fourth-quarter operating profit in the IT and Mobile Communications division fell to 2.42 trillion won from 3.29 trillion won a quarter earlier on increased marketing costs for its smartphones.

Mining cryptocurrencies require a speedy, energy-efficient hardware which is the reason why Samsung has commissioned a special ASIC chip for mining operations.

He predicts sales from cryptocurrency mining chips will account for less than one per cent of Samsung's total revenue this year.

The launch of the Galaxy S9 flagship smartphone next month should minimize any off-season weakness in demand during the first quarter, the company said.

"It is hard to give specific details, but we have been trying to diversify our clients and reduce reliance on a certain customer to build a healthy portfolio", a Samsung executive said in a conference call yesterday when asked about the potential impact of lower than expected iPhone X sales.

Its fourth quarter turnover (65.98 trillion won - 49.7 billion euro) was also higher than last year's fourth quarter (53.33 trillion won).

The chip business was Samsung's top earner previous year.