Samsung Reports Their 2018 Q1 Profit with Boost in Crypto Mining
Samsung Electronics has announced a year-on-year 58% growth in the operating profits for 2018 Q1. This increase has been due to the growing demand for the cryptocurrency mining chips which are manufactured by Samsung.
Samsung’s executive vice president of the investor relations, Robert M. Yi said that the improvement in profitability, especially in the organization’s semiconductor business, played an important role in the setting of the quarterly operating profit record of about $14 billion. This was during the financial earnings call which happened on Thursday.
Yi gave the following explanation;
“In the semiconductor business, the earning increases significantly year over year thanks to favorable market conditions driven by strong demands in the server and graphics card memories as well as earning improvement in both the System LSI and Foundry businesses led by an increasing demand of chips used in flagship smartphones and cryptocurrency mining.”
However, Samsung was not involved in disclosure of the exact figures for the mining chip business side. Therefore, the positive figures come after the confirmation made in February from the technology giant that it is now in the production of 11nm and the 8nm processors in meeting the growth in the market from the crypto mining sector.
Currently, the indulgence of Samsung in the cryptocurrency mining business has contributed to the regional competition in the crypto sector. Therefore, a Taiwan based organization involved in making chips TSMC also announced similar growth due to the demand of the mining chips in the previous earnings call.
However, Samsung made a forecast that there might be a high demand for the mining chips in the future and that might continue in Q2. Additionally, the earnings of the LSI and also the Foundry business may reduce because of the slow smartphone component business demand.