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Bitcoin mining rig manufacturers are dealing with a semiconductor supply crunch according to regional reports stemming from China. There\u2019s been a global semiconductor supply shortage and it\u2019s affecting nearly every type of business in the supply chain that manufactures cars, PCs, laptops, smartphones, and cryptocurrency mining devices. Moreover, the recent shortage has invoked the demand for second-hand and older generation mining rigs.<\/strong><\/p>\n Currently, the world is dealing with a semiconductor supply crunch<\/a> which has been spurred by the aftermath of Covid-19 and the lockdowns. Automobile makers, PC manufacturers, smartphone production, and almost every electronics manufacturer under the sun is dealing with this issue. For instance, reports detail<\/a> that auto giants like Toyota Motors, Nissan, Ford, Volkswagen, and more have been chomping at the bit to obtain microchips from suppliers like TSMC. On January 27, 2021, the financial reporter from China, Iyke Aru, reported on how the microchip supply shortage is \u201ctaking a toll on Chinese bitcoin miners.\u201d<\/p>\n \u201cThe unique case of mining is complicated as a result of the coincidence with the increasing demand for Bitcoins and the associated expansion of the mining industry.\u201d Aru details. Moreover, Aru also noted that because of the shortage \u201cChinese cryptocurrency miners are already scrambling for second-hand machines just to keep up with industry requirements.\u201d<\/p>\n <\/ins> <\/ins> <\/p>\n Meanwhile, manufacturers and industry executives are hoping for other solutions to appear. During the second week of January, Nvidia revealed some cheaper types of semiconductors for computers that could possibly help the supply crunch, according to reports. Patrick Moorhead, principal analyst at Moor Insights and Strategy told Marketwatch in an interview<\/a> that the shortage has impeded businesses working with semiconductor foundries. \u201cThere is not enough capacity at TSMC and at Samsung,\u201d Moorhead explained. \u201cThere are too many people going for the same foundries.\u201d<\/p>\n The scramble for second hand and older generation mining rigs has not just affected China but second markets in Europe and the U.S. have seen increased prices. For example on Ebay, there are hundreds of results<\/a> for pre-owned S9s and even people selling bulk packages as well. Mining rig prices can be 2x to even 10x higher than what they were before the crypto economy\u2019s bull run. The quantity of second-hand mining machines is far larger when it comes to older generation mining rigs, as new releases are much harder to obtain. There are far fewer listings on secondary markets and direct from the manufacturer deliveries are sold out until spring 2021.<\/p>\nSemiconductor Shortage Complicates Mining Rig Manufacturing<\/h2>\n
Second-Hand Machines, Older Generation Rigs, and \u2018Too Many People Going for the Same Foundries\u2019<\/h2>\n