Samsung Electronics has reported 58 percent year-on-year growth in its operating profits for Q1 2018 – an increase driven in part by strong demand for cryptocurrency mining chips.
During a financial earnings call on Thursday, Robert M. Yi, Samsung's executive vice president of investor relations, said the profitability increase seen in the firm's semiconductor business played a significant role in setting a new quarterly operating profit record of 15.6 trillion Korean won ($14 billion).
Yi explained the phenomenal rise, saying:
While Samsung did not disclose precise figures for the mining chip side of the business, the positive figures follow a February confirmation from the tech giant that it was now producing 8nm and 11nm processors to meet growing market demand from the cryptocurrency mining industry.
Samsung's expansion into cryptocurrency mining also adds to the regional competition in the sector, with Taiwanese chip maker TSMC also reporting similar growth in mining chip demand during its own recent earnings call.
Looking ahead, Samsung forecast that the demand for mining processors will continue to expand in Q2, while the earnings of its LSI and Foundry businesses may decrease due to slowing demand for smartphone components.
Samsung chip image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.