Major semiconductor manufacturer in Malaysia shuts down, TSMC raises prices across the board, Bitcoin miners struggle

Due to the impact of the pandemic in Malaysia, Bitcoin miners may face a severe shortage of semiconductors, causing a 20% increase in the cost of chips below 16 nanometers. The shortage of semiconductor chips has once again become a focus due to the pandemic in Malaysia. The well-known German technology engineering company Bosch stated that Covid-19 is severely affecting Malaysia's semiconductor manufacturing center, leading to a disruption in the semiconductor supply chain, resulting in a severe global chip shortage.

The number of confirmed cases is on the rise in Malaysia. Major companies such as STMicroelectronics, NXP Semiconductors, and Infineon have factories in Malaysia. Although Malaysia's tech supply chain is not as crucial as Taiwan, South Korea, and Japan, it has become a major hub for chip packaging and testing in recent years. Consequently, the closure of factories in Malaysia by STMicroelectronics and Infineon due to the pandemic is expected to exacerbate the shortage of semiconductors and other components.

Despite the controlled situation in Taiwan, Taiwan Semiconductor Manufacturing Company (TSMC) has reportedly announced a 10% to 20% price increase across the board, raising costs. It is said that TSMC has notified major customers of the potential price hike, with prices for all chips involving 16 nanometers and below increasing by 10-20%, including those used in smartphones, computers, automobiles, and Bitcoin miners.

In 2021, companies like Bitmain, Canaan Creative, and MicroBT have occasionally announced significant sales to some of the world's largest mining operations. Ordinary consumers are forced to purchase Bitcoin mining equipment through secondary market suppliers, who typically charge high fees. Meanwhile, many automakers are cutting production as companies like BMW, Toyota, and Volkswagen encounter chip acquisition issues.

Taiwan's Minister of Economic Affairs, Wang Mei-hua, stated that Taiwan is doing everything possible to maintain and develop the semiconductor supply chain.

The global shortage in semiconductor supply could impede Bitcoin mining operations and the manufacturers of these machines. If the shortage persists, the costs of products such as SoCs, CPUs, GPUs, ASICs, and controllers may rise, all of which are closely related to the cryptocurrency ecosystem.

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