Samsung Will Manufacture ASIC Mining Chips For Canadian Mining Firm Squire

amsung is set to manufacture cryptocurrency mining chips for Canadian mining firm Squire.

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The crypto mining industry is set to have yet another chipset maker to look at in a market that is increasingly becoming competitive. Samsung is set to manufacture cryptocurrency mining chips for Canadian mining firm Squire.

Bitmain facing stiff competition

After both Bitcoin mining giant Bitmain and startup Bitfury announced the release of new ASIC chips, a Canadian startup is keen to join the party.

Cryptocurrency mining firm Squire has just signed a massive deal with electronics giant Samsung to manufacture of ASIC mining chips.

The company raised $19.5 million this past August and plans to use the funds to develop top-of-the-line cryptocurrency mining hardware, leveraging a partnership with Gaonchips and the South Korean conglomerate. The two partners will help Squire in the design and manufacture of a new range of ASIC mining chips.

Given the pedigree of the companies in the partnership, Squire is expected to offer direct competition to the world’s most dominant bitcoin mining company and leading ASIC manufacturer Bitmain.

Squire announced in August that it was partnering with an undisclosed design fabrication firm to handle the back-end designing, testing, and mass production of their new ASIC chip.

The previously unnamed firm is now revealed to be Gaonchips, which is Squire’s official design house now, while Samsung Electronics is the foundry partner.

According to the firm, the next-generation mining chip would be used to mine Bitcoin Cash (BCH), Bitcoin (BTC) and other cryptocurrencies.

Can Samsung help Squire challenge Bitmain?

Bitmain Technologies has held an iron grip on the Bitcoin mining industry for the last several years, together with Taiwan Semiconductor Manufacturing Company (TSMC).

The two companies have almost monopolized the crypto mining space, with TSMC leveraging its position as the world’s largest producer of semiconductors.

But competition has emerged in recent years, and companies like Bitfury and Bitwei have all announced new ASIC mining chips, forcing Bitmain to re-examine its game plan.

A recent report by BitMEX Research suggested that Bitmain adopted a new strategy, offering its top Antminer S9 to miners at considerably lower prices than it usually would. Although it risks running into a loss, the Chinese firm intends to put pressure on its competitors.

At the time, BitMEX Research wrote:

“These low prices are likely to be a deliberate strategy by Bitmain, to squeeze out their competition by causing them to experience lower sales and therefore financial difficulties.”

That strategy may work for Bitmain, but the firm also has yet to face serious competition since the company began its near-monopoly in 2014.

Samsung’s partnership with Squire could herald a new chapter that sees the Canadian company challenge Bitmain’s dominance in the crypto mining space, presumably planning to leverage the near-limitless resources Samsung can put at Squire’s disposal.

Samsung’s foundry can meet Squire’s production needs, providing the company a much-needed competitive edge on Bitmain.

Squire has said that once the initial ASIC chip being developed in collaboration with Gaonchips meets a given set of specifications and requirements and gains approval, Samsung will begin mass production of the chips.

The ability to produce top-tier mining chips will likely see the new entrant challenge Bitmain, but Samsung’s experience in the ASIC chip making industry will play a significant role in Squire’s capacity to penetrate the Bitmain wall.

While crypto markets look forward to the resurgent performance and improved prices for digital assets, several mainstream investment firms have slowly shown increased interest, both in currencies and in the companies supplying the hardware.

In South Korea, companies like telecommunication giant SK, top insurance company Kyobo, and leading commercial bank Shinhan have all embraced blockchain technology and cryptocurrencies in one way or another.

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