Squire Mining Ltd, headquartered in Canada, has just managed to pull a big one off after convincing Samsung Electronics to use their resources to manufacture its ASIC chips for use in the mining of cryptocurrencies.
On the back of establishing a design house recently in the East Asian country of South Korea, the company has revealed that the mega subsidiary would be assisting the firm by offering foundry services towards the production of new ASIC chips.
Samsung: The Chip Catch
Samsung, an explosive brand and the largest chaebol (conglomerate) in the whole of South Korea, is known mostly throughout the world for its dominant market of smartphones and semiconductors, of which Samsung Electronics is only a subsidiary. With one of the best foundery services for the production of semiconductors in the whole world, Squire Mining Ltd would see off the mass production of crypto mining chips to consolidate its recent transition from physical mining to digital mining.
Application-Specific Integrated Circuit (known as ASIC) has become increasingly popular in the design of new miners due to its incredibly small size, low power consumption, and computation power enhancing capabilities. The ASIC chip is an ideal match for typical digital mining machines which continue to run non-stop on a copious amount of Watt to ensure a seamless and continuous computational processing.
The demand for ASIC chips continues to increase regardless of the volatility of the cryptocurrency market, with Samsung confirming that the production of the in-demand chip influenced about 73 percent of its earnings in the first quarter of this year. This also interestingly coincided with the period when the value of Bitcoin was still at heights above $10,000. This explains the sudden rush of mining companies to purchase additional ASIC miners.
Scramble for Efficiency and Market Share
Due to the recent fall of Bitcoin and the relative drop in other altcoins, the level of profitability in the mining sector has somewhat dropped. This has however not deterred companies from investing in the sector as investments continue to flow in. To increase profitability, Bitmain and Ebang have boldly claimed production of soon-to-be-released efficient miners that would perform faster while consuming less power.
Samsung is yet to follow suit its rivals though, in the declaration of future ASIC miners, but Squire is already aiming at a mass scale of production. In a statement released to the press, the company stated:
“Our front-end development team of engineers and programmers is currently working with Gaonchips to develop the Company’s initial ASIC chip to mine Bitcoin Cash, Bitcoin, and other associated cryptocurrencies using a wafer process technology that, once confirmed and accepted as meeting certain prescribed specifications and criteria, will form the basis of an initial mass production test run of the ASIC chip by Samsung Electronics.”
The promise of a mass scale production is not equal to mass scale adoption though, and it remains to be seen how Squire products would perform in an industry already dominated by Samsung and Bitmain.