Samsung confirmed in January 2018 that it had begun mass production of ASIC chips for bitcoin and cryptocurrency mining, entering the specialized hardware sector previously dominated by Bitmain and Canaan Creative.
Samsung has officially confirmed that it is manufacturing application-specific integrated circuits designed for cryptocurrency mining, marking the South Korean electronics giant's formal entry into the specialized hardware sector.
When contacted for comment, a Samsung spokesperson stated that "Samsung's foundry business is currently engaged in the manufacturing of cryptocurrency mining chips. However we are unable to disclose further details regarding our customers." This statement confirmed months of industry speculation that Samsung had undertaken mining chip production, though the company declined to identify which mining hardware companies had contracted with Samsung for fabrication services.
The announcement followed reports in Korean media that alleged Samsung had undertaken the manufacturing effort in collaboration with an unnamed Chinese distribution partner. Samsung's involvement signals that cryptocurrency mining hardware has achieved sufficient market scale and legitimacy to attract attention from multinational semiconductor manufacturers. The economics of mining hardware sales justified Samsung's capital investment in specialized production capacity.
The chip design was completed in the previous year, with mass production commencing in January 2018. This timeline aligned with industry cycles where manufacturers completed designs during market downturns and ramped production during recovery periods. Samsung's entry into mining chip manufacturing consolidated a trend toward vertical integration, where large semiconductor firms increasingly produce specialized circuits for emerging applications.
Later in 2018, it became known that Samsung had commenced work with Halong Mining and other mining hardware companies to produce their ASIC chips. The relationships revealed that Samsung was positioning itself as a foundry provider willing to manufacture chips designed by mining hardware specialists, rather than developing proprietary mining chips under its own brand.
Samsung's involvement brought significant manufacturing capacity to the mining hardware sector. The company operates some of the world's largest semiconductor fabrication facilities capable of producing chips at advanced process nodes. Samsung's production capabilities enabled mining hardware manufacturers to scale production beyond what specialized foundries could accommodate.
The entry of Samsung into mining chip manufacturing represented a pivotal moment for the industry. Previous competition had centered on Bitmain and Canaan Creative, both working with Taiwan's TSMC for fabrication. Samsung's involvement created new competitive dynamics and expanded fabrication capacity available to mining hardware designers. Large semiconductor manufacturers increasingly viewed mining ASIC production as a legitimate business opportunity worthy of significant capital allocation.
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Sources:
- [TechCrunch: Samsung confirms it is making ASIC chips for cryptocurrency mining](https://techcrunch.com/2018/01/31/samsung-confirms-asic-chips/)
- [Bitcoin Magazine: Samsung Is Building ASIC Chips for Halong Mining](https://bitcoinmagazine.com/business/samsung-building-asic-chips-halong-mining)
