Strong demand for crypto mining chips boosts Samsung Q1 profit

Strong demand for crypto mining chips boosts Samsung Q1 profit

South Korean electronics giant Samsung has gone big in the cryptocurrency market focusing on mining, where it appeared rich pickings were to be had.

On Thursday, the electronics company reported an impressive first quarter 2018 performance with revenues and profits in record territory for the fourth quarter in a row. The catalyst, according to Samsung, was the huge demand for semiconductors used in cryptocurrency mining, which offset the continued weak demand in the smartphone market.

The figures made for an outstanding reading. Samsung posted operating profit of KRW15.64 trillion ($14.45 billion) with an excess of KRW60.56 trillion ($60 billion) in revenue. The latter was chiefly fueled by the rise in Samsung’s memory chip sales, which the company said continued to grow at a rapid pace.

Speaking during an earnings call, Robert M Yi, executive vice president for investor relations at Samsung, explained that the boom in turnover and profits was chiefly due to extremely favourable market conditions in the industry.

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

However, Samsung continues to face increasing competition from other manufacturers of semiconductors as new players enter the cryptocurrency mining industry. Additionally, continuing weak demand for smart phones continues to negatively affect the company and the next quarter might not be as positive where results are concerned.

Meanwhile, AMD also reported strong performance in the first quarter of 2018, thanks to the continued demand for cryptocurrency mining.

First-quarter revenue for the chipmaker came in at $1.65 billion, while operating income and net income amounted to $120 million and $81 million, respectively. The first quarter’s “outstanding start to 2018” marked a 40% year-over-year revenue growth for AMD, according to President and CEO Dr. Lisa Su.

Note: Tokens on the Bitcoin Core (segwit) Chain are Referred to as BTC coins. Bitcoin Cash (BCH) is today the only Bitcoin implementation that follows Satoshi Nakamoto’s original whitepaper for Peer to Peer Electronic Cash. Bitcoin BCH is the only major public blockchain that maintains the original vision for Bitcoin as fast, frictionless, electronic cash.
Samsung eyes blockchain-based supply chain management to cut costs

Samsung eyes blockchain-based supply chain management to cut costs

The tech giant is continuously strengthening its integration of blockchain technology.

Samsung is reportedly working on transitioning to a blockchain-based system to manage their global supply chain.

In an interview with Bloomberg, blockchain chief Song Kwang-woo of Samsung SDS Co. says that the move is expected to cut shipping costs by 20%—a substantial amount considering that the Korean manufacturing giant expects 488,000 tons of air cargo and over a million 20-foot shipping containers for this year. Samsung’s global smartphone and semiconductor manufacturing supply is a multi-billion dollar business.

Blockchain technology has the perfect features to disrupt and streamline supply chains, enabling real-time communication, tracking, and documentation of relevant product information embedded in product tags for every single product in circulation. All of these can be stored and monitored in an incorruptible, time-stamped ledger, automating the currently redundant, time-consuming, paper-based manual processes that shippers still employ. It also allows easy verification of legitimate products, and can effectively purge out counterfeit goods.

With a vast line-up of benefits, several start-ups and even industry big names like IBM have joined the race pursuing the same mission—focusing on a more efficient, digital coordination system for supply chains using the technology.

“It will have an enormous impact on the supply chains of manufacturing industries. Blockchain is a core platform to fuel our digital transformation,” Song said.

This isn’t the company’s first venture into blockchain technology. Samsung is the biggest smartphone and chip manufacturer in the world, and will be one of the first and biggest companies to aggressively integrate blockchain technology into their product line. Samsung’s flagship blockchain project, Nexledger, promises to be a B2B scale infrastructure offering digital identity, payments, and authentication.

Last year, they also won a contract to take charge of the Seoul government’s public sector for blockchain platform, a project where they will cover welfare, public safety, and transportation by 2022. In January this year, the company also started manufacturing ASIC miners and peripherals, a move cryptocurrency analyst Joseph Young says would “provide Bitmain its first real competitor.”

Whether the supply of these new mining products will also be monitored by their blockchain-based supply chain management system is not specified, although it would make so much sense.

Note: Tokens in the SegWit chain are referred to as SegWit-Coin BTC (inaccurately called Bitcoin Legacy or Core by many) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.
Samsung begins manufacturing cryptocurrency mining hardware

Samsung begins manufacturing cryptocurrency mining hardware

South Korea’s electronics and tech behemoth is now officially a player in the cryptocurrency space.

In a report published by Korean capital market news site The Bell, Samsung Electronics Co., Ltd. has begun the production phase for ASIC (application-specific integrated circuit) miners and other cryptocurrency mining peripherals.

Confirming the news in a tweet, cryptocurrency analyst Joseph Young opined that Samsung’s move to create and sustain their own foundry dedicated to cryptocurrency mining is “unprecedented,” adding that it would most likely “provide Bitmain its first real competitor.”

In the report by The Bell, however, a long-term plan was revealed in which Samsung has partnered up with a Chinese bitcoin mining equipment manufacturer, a partnership that began in 2017. It was only this year that the design and development of Samsung’s own ASIC chips were finished. This is related to news of Taiwan Semiconductor Manufacturing Company (TSMC) taking mass orders for ASIC miners from Bitmain.

With suppliers like TSMC and now Samsung both providing for major mining companies like Bitmain, the revenues for the foundry business is expected to rise. Samsung Securities analyst Hwang Min-seong, however, said that “[While] Samsung Electronics could increase its revenues through ASIC chip manufacturing but because the foundry only accounts for a small portion of the company’s semi-conductor manufacturing plant, it is difficult to predict that the firm’s mining venture will have a significant impact on the company’s revenues.”

The new foundry is expected to expand its operation in coming years, with Samsung planning ventures from China to other Asian regions like South Korea and Japan which both have strong demand for cryptocurrencies despite government regulation. The foundry’s operation is aligned with the demand from the Chinese bitcoin mining firm that Samsung has partnered with.

As a new player in the foundry business, Samsung’s position isn’t one poised at targeting revenues, rather, it is merely opening and laying out foundations for future ventures. After its brief showcase of upcycled old smartphones repurposed as crypto mining rigs last year, Samsung also has GPU-based mining development in its roadmap for the newly-opened foundry. With its well-established portfolio for large-scale and sophisticated semi-conductor manufacturing, Samsung is stable enough to provide for and match the demand by major mining companies like Bitmain.

With the rising demand for prominent cryptocurrencies like Bitcoin Cash, ASIC mining rigs have also experienced increased orders. Mining ventures have attracted strong investments from global players and continue to expand as more people are enlightened about the benefits of cryptocurrencies for a future filled with unrestricted growth, global adoption, permissionless innovation, and decentralized development.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Samsung to take charge of Seoul government’s public sector blockchain platform

The project will cover welfare, public safety, and transportation by 2022.

Despite cracking down on ICO’s, South Korea is actually in on the blockchain and cryptocurrency revolution. In fact, its capital, Seoul’s government is partnering up with Seoul-based Samsung subsidiary, Samsung SDS to handle the development of its blockchain-based platform. The company will conduct feasibility studies and testing of the blockchain for application in welfare, public safety, transportation, and other municipal affairs. The project is set to launch by 2022 and would cover the entire city’s administration in order to facilitate services for its citizens and improve transparency within the government.

“Samsung SDS intends to contribute to the city becoming a world-class city by strengthening the transparency, fairness and civic convenience through its own block chain technology and consulting capability.”

In a statement, Samsung SDS says they are the first domestic company to expand its blockchain business into the public sector. They say that initial applications will include digital identity-based sectors, ranging from processes such as those in distribution of unemployment benefits, to used car sales and ownership registry.

According to a statement by Samsung SDS CEO Hong Won-Pyo, the project will help propel Seoul as a “top-rate global city.”

“Samsung SDS’ Blockchain technology and consulting capabilities will contribute to Seoul’s leap as a top-rate global city.”

Apart from the public sector, Samsung SDS is also expanding into other sectors where they can apply blockchain technology, including the banking sector. Their manufacturing arm, Samsung SDI is also applying the technology for its electronic contract system, the release notes.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.

Samsung to take charge of Seoul government’s public sector blockchain platform

The project will cover welfare, public safety, and transportation by 2022.

Despite cracking down on ICO’s, South Korea is actually in on the blockchain and cryptocurrency revolution. In fact, its capital, Seoul’s government is partnering up with Seoul-based Samsung subsidiary, Samsung SDS to handle the development of its blockchain-based platform. The company will conduct feasibility studies and testing of the blockchain for application in welfare, public safety, transportation, and other municipal affairs. The project is set to launch by 2022 and would cover the entire city’s administration in order to facilitate services for its citizens and improve transparency within the government.

“Samsung SDS intends to contribute to the city becoming a world-class city by strengthening the transparency, fairness and civic convenience through its own block chain technology and consulting capability.”

In a statement, Samsung SDS says they are the first domestic company to expand its blockchain business into the public sector. They say that initial applications will include digital identity-based sectors, ranging from processes such as those in distribution of unemployment benefits, to used car sales and ownership registry.

According to a statement by Samsung SDS CEO Hong Won-Pyo, the project will help propel Seoul as a “top-rate global city.”

“Samsung SDS’ Blockchain technology and consulting capabilities will contribute to Seoul’s leap as a top-rate global city.”

Apart from the public sector, Samsung SDS is also expanding into other sectors where they can apply blockchain technology, including the banking sector. Their manufacturing arm, Samsung SDI is also applying the technology for its electronic contract system, the release notes.

Note: Tokens in the SegWit chain are referred to as SegWit1X (BTC) and SegWit Gold (SWG) and are no longer Bitcoin. Bitcoin Cash (BCH) is the only true  Bitcoin as intended by the original Satoshi white paper.  Bitcoin BCH is the only public block chain that offers safe and cheap microtransactions.