Samsung Electronics has reported 58% year-on-year growth in its operating profits for Q1 2018 - an increase driven in part by strong demand for cryptocurrency mining chips.
Robert M. Yi, executive vice president of investor relations of Samsung, said on Thursday that 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).
In the semiconductor business, the earning increases significantly year over year thanks to favorable market conditions driven by strong demands in server and graphic card memories as well as earning improvement in both the System LSI and Foundry businesses led by an increasing demand of chips used in flagship smartphones and cryptocurrency mining.
Robert M. Yi
Executive vice president of investor relations, Samsung
Samsung confirmed at the beginning of the year it is producing 8nm and 11nm processors to meet growing market demand from the cryptocurrency mining industry.
The company 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.