The crypto mining industry faces renewed disruption as the Russia-Ukraine conflict threatens to upset the supply of materials crucial to semiconductor manufacturing. The industry is still reeling from a severe, near two-year chip shortage that ramped up the prices of graphics cards, which are crucial towards minting tokens.
Ukraine And Russia Key Suppliers of Chip Components
Ukraine supplies about 90% of the United States’ semiconductor-grade neon, a gas integral to the lasers used in the chip-making process, advisory firm Techcet says in a report. Russia accounts for 35% of the country’s palladium supply, a rare metal used in creating some types of semiconductors.
Any disruptions are likely to have a broad impact on chip supply, which in turn could see processor prices skyrocket once again. This in turn could crimp potential expansion in the mining industry, which is heavily dependent on chip supply.
The White House had warned chipmakers to diversify their supply in the event of a Russian invasion of Ukraine, Reuters reported earlier this month. With a full-blown conflict now underway, the possibility of supply disruptions is high in the coming months.
Dutch firm ASML recently said it was exploring alternatives to its current supply of neon. Other executives in the chipmaking industry have also flagged potential hinderances to production if supply were to be disrupted.
Chipmaking giants Intel and Taiwan Semiconductor Manufacturing Co (TSMC) recently announced plans to ramp up semiconductor manufacturing, amid increasing demand. TSMC, the world’s largest chip supplier, announced a $44 billion investment to boost supply earlier this year.
With Bitcoin’s hash rate, ie the computational power required to mint new tokes, recently touching record highs, the mining industry is expected to rely heavily on steady chip supply.
China-Taiwan tensions another threat?
The recent Ukraine conflict has drawn comparisons to tensions between Taiwan and China. Any military incursions by China are likely to rattle global chip supply.
Through TSMC, Taiwan is the largest semiconductor exporter in the world.
- Are Hedge Funds Planning USDT Dump? Tether CTO Responds To Rumors
- Here’s Why Apecoin (APE) Price Is Skyrocketing Today
- Crypto Prices Falling Despite “Buy The Dip” Sentiment, Data Reveals Why
- Institutional Traders Dumped Bitcoin At A Record Pace Last Week
- Terra USTC Jumps 300%; Lands Back In Top 100 Cryptos
- Ripple’s EX CTO Dumps 40 million XRP tokens In Last 10 Days
- Dogecoin Soars 35%, Here’s Why Breaking This Level Is Crucial
- Crypto Lender Nexo Denies Fraud, Issues Cease And Desist Notice
- Ethereum (ETH) Price Rise and Stability Pulls Broader Crypto Market to $1 Trillion
- Scoop: This Hedge Fund Is Trying To Bailout BlockFi To Counter FTX
- Tezos Price Analysis: XTZ Rebounds from Yearly Support; is it a good buy?
- Tron Price Analysis: Triangle Pattern Governs the TRX Price Action; Should Coin Holders Worry?
- Dogecoin Price Analysis: DOGE Winning Streak Aims to Reclaim $0.077
- Apecoin Price Analysis: Reversal Pattern Sets 21% Rise in APE Price
- Ethereum Price Analysis: Will ETH Relief Rally Revert From $1300?
- Bitcoin Price Analysis- Higher Price Rejection Hints BTC to Retest $20000
- SHIB Price Analysis: Overhead Supply Pressure Hints SHIB to Retest $0.00001
- Avalanche Price Analysis: Will The AVAX Breakout Rally Reach $30?
- Sandbox Price Analysis: U-shaped Recovery could Lead SAND above $1.5
- NEAR Price Analysis: Reversal Within Channel could Sink NEAR Below $3