Samsung Electronics Witnesses Large Number Of Profit Gains In The First Quarter
One of the largest electronic and smart appliance tech company, Samsung has recently witnessed its operating profits rise since in the first quarter of this year in comparison to the numbers of last year. The firm attributes the rise of its semiconductor department that manufactures bitcoin mining chips. Samsung also hopes that this trend will continue into the second quarter of the year.
South Korean Samsung Electronics, the world’s leader in advance semiconductor technology, not long ago, the company made its 1Q18 earnings public. Before you start getting confused, Samsung Electronics is the head company of the Samsung Group that include assembly plants and sales network in 80 countries.
The numbers the company put in the first quarter of the year were as follows: it recorded a total of 60.56 trillion Won, that is $56 billion as consolidated earnings. Also, it acquired up to 15.64 trillion Won ($14.5 billion) as its operating profits, that indicates an increase of up to 58 percent from 9.9 trillion Won ($9.2 billion) of the first quarter of last year. However, the company’s year-on-year sale went up by about 20 percent.
According to The Seoul Newspaper; Samsung Electronics semiconductor division accounted for about three-quarters (73%) of total operating profits, leading the company to a record high. The company explained that: Demand for the semiconductor division increased due to sales of system LSIs (ASICs) for flagship smartphones and demand for virtual currency mining chips.
This past January, Samsung announced that it had started making ASIC chips which are purposely for mining cryptocurrencies like bitcoin, ether, etc. A company spokesperson spoke to an American online publisher of technology industry news, TechCrunch.
The spokesperson stated that: Samsung’s foundry business is currently engaged in the manufacturing of cryptocurrency mining chips. Samsung Electronics provides certain services that link mid-to small-sized companies with qualified ASIC design services to support.
One of its customers, a mining rig manufacturer Halong Mining has been using Samsung’s 10nm T1558 mining chips, calling them the first-ever 10nm bitcoin mining chips. Halong states that their rig is the world’s most efficient bitcoin miner, operating at 116TH with Asicboost technology inside for greater power efficiency.
Samsung Electronics stated that: Earning growth should continue in 2Q18, driven by demand for HPC-based semiconductors and an increase in the supply of new 10nm process products. It added that: In the foundry business, despite a decline in demand for mobile parts due to seasonal weakness in 1Q18, earnings increased on the back of high-performance computing (HPC) chip orders.
