Samsung’s Revenues Head to the Moon, Thanks to Cryptocurrency Mining Chips

Samsung’s Revenues Head to the Moon, Thanks to Cryptocurrency Mining Chips
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Samsungs decision to expand into the production of chips for crypto mining has paid off big time as the company is smiling to the bank and having enormous proceeds from it.

The company recently decided to go into the mass production of ASIC chips and has already begun to yield dividends as its first quarter was boisterous.

Robert M. YI, the executive vice president of investor relations on Samsung’s earnings call, stated that;

“In the semiconductor business, earnings increased significantly year-over-year thanks to favorable memory market conditions driven by a strong demand for server and graphics memory as well as earnings improvement in both Systems LSI and foundry businesses led by increasing demand for chips used in flagship smartphones and Cryptocurrency mining.”

The company recorded an operating profit of 15.64 trillion Korean won estimated to be around $14.45 billion. This profit is the reason why South Korea can boast of a total revenue of 60.56 trillion won.

SeWon Chun, Samsung’s semiconductor business for memory senior vice president, made it clear that “for graphics…..total demand increased thanks to strong demand for graphics cards for cryptocurrency mining.”

Some of the major areas of interest include the following;

In the foundry business where cryptocurrencies are grouped, “earnings grew as orders increased for high-performance computing chips.”

Also, for Q2 earnings growth is expected to persist due to “increased supply of 10nm products and high-performance computing chips.”

Finally, another area  to be noted is that for the second half of this year, a focus of the foundry business is to “diversify the consumer base.”

Competitive Market Poses Threat

Samsung gave a peep into its future for the second half of the year to be far more successful than the first thanks to its component business “DRAM.”

This, however, might have to contend with some obstacles like Taiwan Semiconductor a strong competitor and rival in the ASIC market for the mining of bitcoin.

Taiwan semi is a strong contender in the market for chip sales and has mining giants like Bitmain and Canaan Creative in its list of customers.

According to a report by Tech Crunch, the company’s revenues were a catalyst to the vast income generated by the ASIC chip industry which recorded $350 to $450 million

Another threat might be the weakness in smartphone components which may rub off terribly on earnings.

With all the possible setbacks, Samsung is still very confident for a better and brighter future no doubt; we surely wish the company all the best in its journey to the moon.

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