Cryto Mining Supply Chains May Record Slow Growth
The rush for computer parts that supports crypto mining over the past two years have been mad, and have recorded substantial profit margins for many companies over the years. This has prompted graphics cards and motherboard makers to introduce a new line of these peripherals designed to handle mining requirements, but lately, there has been worrying signs that these devices may not bring in much profit anymore.
Makers of these mining motherboards and graphic cards would see their revenue and profit prospects for this second half of 2018 dimmed. The sustained crypto mining chill causes this as the demand for mining devices continue to lose steam on little investment gain. Many of these makers are now targeting a return to the gaming sector to seek growth momentum.
According to DigiTimes :
As the investment gains from crypto mining operations kept declining to virtually zero, small-sized mining farms started to quit the market in April while quite a few medium and large-sized farms were also forced to suspend operations starting in June, making the supply chains of ASIC-based and GPU-powered mining machines suffer significant revenue decreases.
Also, makers of heat dissipation and power supply components, as well as semiconductor players including TSMC, United Microelectronics (UMC), ASE, Powertech Technology, Global Unichip, Fraraday Semiconductor and more, will also see their revenue performances more or less affected by the sustained mining chill. Major GPU makers AMD and Nvidia are also expected to see their profit margin fall on relatively higher GPU inventories
All Hope Not Lost
In a case if “disaster brings opportunity,” over 10,000 mining machines were inundated by heavy torrential rains in the southwestern China province of Sichuan, and this has triggered a new wave of rush orders for GPU- and ASIC-powered machines from China.
This is expected to sharply deplete the inventories of graphic cards of Asustek Computer, Gigabyte Technology, Micro-Star International (MSI) and TUL. Taiwan Semiconductor Manufacturing Company (TSMC) and Global Unichip will also benefit from rush demand for ASICs.
Also, BlackRock the world’s largest assets manager, based in the US and with an assets management scale of US$6.3 trillion, is reported to be actively assessing the feasibility of venturing into the virtual currency and blockchain fields, riveting great attention from the crypto mining supply chains.