Samsung isn’t really associated with bitcoin or the cryptocurrency craze. It did tap into the hysteria recently by showing off a bitcoin mining rig made out of Galaxy S5 units. That was a fun little experimental project but its partnership with a Chinese bitcoin mining equipment manufacturer is not. Samsung is reportedly producing cryptocurrency mining chips for its China-based partner.

According to a report out of South Korea, Samsung is going to mass produce ASIC or Application Specific Integrated Circuit chips which will be supplied to the Chinese bitcoin mining equipment manufacturer. Samsung won’t be selling these chips on its own, its chips will be used by that company in its mining rigs.

Whether or not this partnership results in a revenue increase for Samsung’s foundry business remains to be seen. Some analysts believe that this move may not bring in a substantial amount of revenue for the division, at least not initially.

It remains to be seen if Samsung is going to ink similar partnerships with other companies that also produce cryptocurrency mining hardware. The company is reportedly planning to ink such partnerships with companies based in Japan and South Korea as well, two markets where the demand for cryptocurrencies is significantly higher than other parts of the world.

Samsung can leverage its position as a dominant player in the semiconductor market to establish such partnerships and forge new avenues of growth for the company.

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