According to regional reports from China, Bitcoin mining equipment manufacturers are dealing with the tight semiconductor supply. The global semiconductor supply shortage has affected almost all types of businesses in the supply chain that manufacture cars, personal computers, laptops, smartphones and cryptocurrency mining equipment. In addition, recent shortages have caused demand for second-hand and older generation mining equipment.
Semiconductor shortage complicates mining equipment manufacturing
Currently, due to the consequences and blockade of Covid-19, the world is dealing with the issue of semiconductor supply tightening. Car manufacturers, personal computer manufacturers, smartphone manufacturers, and almost all electronics manufacturers in the sun are solving this problem. For example, there are reports that auto giants such as Toyota, Nissan, Ford, and Volkswagen have been scrambling to obtain microchips from suppliers such as TSMC. On January 27, 2021, Iyke Aru, a financial reporter from China, reported how the shortage of microchips “caused losses to Chinese Bitcoin miners.”
“Due to the increasing demand for Bitcoin and the subsequent expansion of the mining industry, the result of coincidence complicates the unique situation of the mining industry.” Aru details. In addition, Aru also pointed out that due to shortages, “Chinese cryptocurrency miners are already competing for second-hand machines to keep up with industry demand.”
Used machines, older drilling rigs and “too many people seek the same foundry”
At the same time, manufacturers and industry executives hope that other solutions will emerge. According to reports, in the second week of January, Nvidia revealed some types of cheaper computer semiconductors, which may help tight supply. Patrick Moorhead, chief analyst at Moor Insights and Strategy, said in an interview with Marketwatch that shortages have hindered business with semiconductor foundries. Moorhead explained: “TSMC and Samsung have insufficient production capacity.” “Too many people choose the same foundry.”
The competition for second-hand and older generation mining equipment has not only affected China, but also the second-hand market prices in Europe and the United States have risen. For example, on Ebay, people who sell second-hand S9 or even bulk packages have hundreds of results. The price of mining equipment may be twice or even 10 times higher than the price before the crypto economy bull market. For older generation mining equipment, the number of second-hand mining machines is much larger because it is difficult to obtain new versions. The number of listings on the secondary market is much smaller, and it is sold out directly from the manufacturer until the spring of 2021.
What do you think of the losses caused by the shortage of semiconductors to the Bitcoin mining industry? Let us know your thoughts on this topic in the comments section below.
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