Manufacturers of Bitcoin mining rigs face a shortage of semiconductor supply, according to regional reports from China. There has been a global semiconductor supply shortage and it affects almost all types of companies in the supply chain that manufacture cars, PCs, laptops, smartphones and mining devices. of cryptocurrency. Additionally, recent shortages have created a demand for used and older mining rigs.
Semiconductor shortage complicates manufacturing mining rigs
Currently, the world is facing a semiconductor supply crisis that has been spurred by the consequences of Covid-19 and shutdowns. Car makers, PC makers, smartphone production, and almost all electronics manufacturers under the sun are facing this problem. For example, there are reports that auto giants like Toyota Motors, Nissan, Ford, Volkswagen and many others have nibbled at it to get microchips from vendors like TSMC. On January 27, 2021, Chinese financial journalist Iyke Aru explained how the microchip shortage “is wreaking havoc on Chinese bitcoin miners.”
“The unique case of mining is complicated because it coincides with the growing demand for Bitcoins and the associated expansion of the mining industry.” Details of Aru. In addition, Aru also noted that due to the shortage, “Chinese cryptocurrency miners are already scrambling for used machines just to meet industry demands.”
Used machines, older generation platforms and ‘too many people are looking for the same foundries’
Meanwhile, manufacturers and industry leaders are waiting for other solutions to emerge. In the second week of January, Nvidia revealed cheaper types of computer semiconductors that could potentially contribute to the supply shortage, according to reports. Patrick Moorhead, a senior analyst at Moor Insights and Strategy, told Marketwatch in an interview that shortages have kept companies from working with semiconductor foundries. “There isn’t enough capacity at TSMC and Samsung,” Moorhead explained. “There are too many people choosing the same foundries.”
The rush for used and older mining rigs has not only hit China, but second-hand markets in Europe and the United States have seen prices rise. For example, on Ebay there are hundreds of results for used S9s and even for people selling packages in bulk. Prices for mining rigs may be 2-10 times higher than they were before the crypto-economy bull run. The number of used mining machines is much higher when it comes to older generation mining rigs because newer versions are much more difficult to obtain. There are far fewer listings in secondary markets, and manufacturer drop shipments sell out until spring 2021.
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