Crypto Mining News

Crypto Miners Affected By Semiconductor Shortage

Crypto miners in Russia could be impacted by the imminent semiconductor shortage. Chipmakers advise a sharp decline in manufacturing rates.

Electronic brands such as South Korea’s Samsung and LG have joined an increasingly loud chorus. This is including the automobile manufacturers such as VolkswagenAudiSeat, and Škoda. They sent a caution of possible challenges ahead as semiconductor parts become more and more scarce.

Chipset manufacturers announced that they had been hit by supplier concerns; with some electronic parts in short supply until the 2nd half of 2021.

ZDNet last month cited TSMC, a Taiwanese company and the world’s biggest provider of semiconductors, is declaring that it is set to boost manufacturing. They will be spending USD 100bn on capacity-increasing steps.

Despite this, ramping up production may not fully resolve the issues until some time next year.

Rival chipmaker Intel has expressed similar opinions.

crypto miners

According to Izvestia, a massive spike in demand for crypto mining hardware was because of the shortfall. Mining equipment has been selling like pancakes in Russia, with numerous miners now evading direct vendors. They’re now buying rigs and graphics cards wholesale from overseas dealers in big bulks.

Russia’s Semiconductor Production Capacity

While the publication notes that many Russian industries will likely be unaffected. This is because Russia has a small local semiconductor manufacturing capacity. This will likely be of no advantage to Russian miners. Local miners rely almost completely on imported electronics.

The news media asserts that it will be hard to source in the coming months. This could lead to numerous mining pools in the nation to scale down their expansion plans earliest until 2022.

For the meantime, the need for electronic parts appears to have pushed some miners to the the used market, where opportunist awaits for their prey. Novosti Voronezha cited that a 50-year-old man trying to buy used mining rig was excited to receive a delivery quickly after paying $200 to an online vendor. This is only to find out that he sent two water bottles an old fire extinguisher by fraudsters.

The buyer took his case to the police, who managed to track down and arrest the con-artists in the Russian Republic of Adygea. Authorities arrested two men and face jail time of up to five years if convicted.

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