Breaking: Samsung Begins Production Of Bitcoin Mining Chips

  • Samsung’s 3nm chips work well with ASICs machines. These machines are used for bitcoin mining. Samsung has a customer for its 3nm chips already.

Multiple reports confirm that the popular electronics manufacturing giant, Samsung, has started producing its three-nanometer chips (3nm) used in Bitcoin mining. The move shows that the company is fulfilling its intention of producing these chips after hinting about it during its Q1 2022 financial call.

The 3nm chips are suitable for certain integrated circuits (ASICs). These ASICs are an important component of bitcoin (BTC) mining. A Wednesday report by The Elec (a Korean electronics industry media outlet) said that trials of the 3nm chips had started already.

Bitcoin miners will rejoice upon the launch of Samsung’s 3nm chips. One major benefit of these chips for bitcoin miners is that it causes up to a 30 percent reduction in power consumption. Another benefit of the 3nm is that it can cause a 15 percent increase in mining speed. Also, its translater density is 33 percent higher than other chips.

Samsung Eyes Bitcoin Mining Industry 

Despite just starting production, Samsung has its first customer for its 3nm chips, the Chinese ASIC company (PanSemi). Several other sources claim that Qualcomm (a US-based Wireless Tech and Innovation firm) has made arrangements with Samsung to buy some of its 3nm chips.

Qualcomm, which is Samsung’s biggest client, has previously made reservations for 4nm chips. However, it canceled the reservation after the South Korean firm couldn’t produce the 4nm chips.

There are unconfirmed reports that Samsung has an agreement to release its 3nm chip manufacturing process to Qualcomm any time it requests it. Unlike the traditional FINFET process, Samsung uses its gate all around (GAAFET) technology to manufacture its 3nm chips.

The FINFET technology is used for creating 7nm and 5nm chips. GAAFET-produced chips have better performance than FINFET-produced chips because their chips’ silicon sizes are lesser. The success of trialing the 3nm chips will determine when Samsung will start producing them on a massive scale.

Samsung’s 3nm chips will improve the efficiency of ASICs used in bitcoin mining. It would also positively impact the SHA256 hash rate. Despite the general downturn in the crypto market, the hash rate on bitcoin’s network continued to rise in the last couple of months.

After reaching peak levels of 220 EH/s last month, bitcoin’s hash rate has been steady at around 215 EH/s this month. A Samsung entrance into the bitcoin mining industry makes the bitcoin mining space more competitive.

The 3nm chips might be Samsung’s way of testing the waters in the bitcoin mining space ahead of launching more innovative products for the bitcoin mining sector. Samsung’s competition in the space is also launching their innovative products. Recently, Intel launched Blockscale, its new crypto mining chip. Intel claims the chip will consume less energy during SHA256 hashing.

Rebecca Davidson Verified

Rebecca is a Senior Staff Writer at BitcoinWisdom, working hard to bring you the latest breaking news in the cryptocurrency market. In the words of Elon Musk “Buy stock in several companies that make products & services that *you* believe in. Only sell if you think their products & services are trending worse. Don’t panic when the market does. This will serve you well in the long-term.”

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