On July 31, 2019, Samsung Electronics reveals the result of Second Quarter which sees profit plummeting but the demand for crypto mining chips increasing.
According to the Q2 report, Samsung reported an operating profit of KRW 6.6 trillion (approx. $5.57 billion US Dollar) on sales of KRW 56.13 trillion. The company has reportedly experienced a drop of 56% from the same time a year ago.
Samsung Finds Increasing Demand in Crypto Mining Chips
However, the electronic giant expects to grow higher with the cryptocurrency mining chips in the second half of 2019. However, the weakness and price declines in the memory chip market have persisted in the second quarter of 2019. By explaining its upcoming growth plan for the second half of 2019, Samsung is expecting to grow its profit from sources including crypto mining chips. The report reads that;
In the second half, earnings growth is expected to continue due to the ongoing expansion of orders for AP, image sensors and DDI as well as increased demand for HPCs, including cryptocurrency mining chips.
However, the firm hasn’t elaborated the process or procedure it plans to take up but thanks to the rising price of the cryptocurrencies which is encouraging miners to demand more processing power. It further states that demand for chip market seen recovering amid external uncertainties. Looking ahead to the next half of 2019, Samsung says that;
Demand is seen growing further on strong seasonality and adoption of higher-density products. For system semiconductors, higher demand in mobile APs, image sensors and display driver ICs (DDIs) is also expected to be seen.
Earlier reports revealed that the tech giant entered into a strategic partnership with MicroBT, the third-largest designer of Bitcoin ASICs. Accordingly, the firm is reportedly designing and manufacturing chips for Bitcoin mining.
Considering Samsung’s expected plan, If the crypto market grows significantly higher, it may result in Samsung achieve its milestone in the third and fourth quarter of the year.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com