Samsung Starts Trial Production of Bitcoin Mining Chip

Consumer electronics company Samsung has completed development of its 3 nanometer (nm) foundry processing chip to facilitate the mining of Bitcoin. There are reports that the company is ready to start trial production of this chip. The use of such Application Specific Integrated Circuit (ASIC) chips can help reduce energy consumption in bitcoin mining.

According to a report, Chinese firm PanSemi can be the first customer of this chip. PanSemi designs AISC for processing bitcoin mining. Samsung is improving controls for its chip, which could increase bitcoin mining efficiency by about 30 percent. With this chip, Samsung will compete with Taiwan Semiconductor Manufacturing Company (TSMC), which also manufactures such chips.

There is growing opposition from the crypto industry regarding proof-of-stake mining of bitcoin. Mining of cryptocurrencies requires a lot of electricity. It involves solving mathematical puzzles on computer systems to validate blockchain transactions. The miner who solves the puzzle first is given cryptocurrency as a reward. The government of Kazakhstan had decided to increase the tax on electricity for crypto miners. Earlier, in some other countries like Iran, there has been a shortage of electricity due to crypto mining.

In some countries, there is also an emphasis on the use of renewable energy for crypto mining. Mining firm Stronghold Digital Mining in Pennsylvania, US, uses coal ash to power hundreds of its supercomputers. The firm aims to use the byproduct without harming America’s energy network. Recently Uzbekistan decided to allow mining of cryptocurrencies with solar power. Apart from this, such firms will also be fully exempted from income tax. The government of Uzbekistan wants crypto miners to meet the power requirement for their mining farms by installing their own solar panels. An order was issued by the President of Uzbekistan regarding this. Mining firms will also have the option to connect to the power grid by paying double the regular tariff. However, additional surcharge may be levied on these firms when the consumption of electricity is high. A license is not required for crypto mining.

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