Good Job! Samsung Takes the Leap to Capitalize on Cryptocurrency Obsession

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Good Job! Samsung Takes the Leap to Capitalize on Cryptocurrency Obsession

Samsung's decision to make the chips, known as application-specific integrated circuits - or ASICs - is likely to ramp up pressure on the competition.

This rise was undoubtedly also fuelled by the company's Q4 and full-year financial figures, where they reported Q4 net profit of KRW 12.26 trillion (roughly 14.2 billion AUD) on sales of KRW 65.98 trillion (roughly 76.2 billion AUD).

Indeed, its fiscal performance seems a long way from 2016 when Samsung was rocked by the fallout from its Galaxy Note 7 debacle, and political issues that saw the arrest of vice chairman and heir apparent Jay Y. Lee over an influence-peddling scandal in South Korea.

Samsung spent a record 43.4 trillion won in capital expenditure previous year to boost production of memory chips and organic light-emitting diode (OLED) screens. Annual sales rose 19 percent to KRW 239.6 trillion (£157bn) from KRW 201.87 trillion (£132bn) in 2016.

The company says that a specific devision within its semiconductor business called Foundry will head up the project.

And the firm said that it expected DRAM and NAND flash chip shipments to increase by about 20 percent and 40 percent in 2018.

The development follows reports that Samsung has overtaken Intel as the biggest chip maker in the world by revenues. Details may differ, but many other cryptocurrencies employ a similar process for creating new coins. As expected, the company raked in record profits.

Samsung is keen to capitalise on the cryptocurrency boom.

Crypto-mania has caused shortages of graphics cards from manufacturers AMD and Nvidia, with AMD's CEO Lisa Su saying that the cryptocurrency mining frenzy is "consuming a lot of GPUs".

"Samsung's foundry business is now engaged in the manufacturing of cryptocurrency mining chips".

People "mine" bitcoin and other cryptocurrencies by using servers to solve complex math puzzles, being constantly in need of the most advanced computer chips to date, the use of which is feared to exert considerable pressure on energy resources and the natural ecosystems at large.

Reports also suggest that Bitmain is going to end its contract with Taiwan Semiconductor Manufacturing Company (TSMC) and instead go ahead with Samsung for their new mining gear.

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