August 26, 2021

Chip supplier for Bitmain to raise prices by 20%

Chip supplier for Bitmain to raise prices

Taiwan's TSMC will raise prices on silicon wafers, which are the basis for the production of microchips, reports Business Times.

According to the publication, the relevant decision was made at TSMC last week. Price hikes will occur in the first quarter of 2022.

The price of wafers to produce 7nm chips will increase by 10%, semi-finished products with more mature technologies, like 16nm, will become more expensive by 15-20%.

Nikkei Asia, citing the media in Taiwan, wrote that the company has already notified customers of the new price tag. For some of them the price increase is effective immediately.

For example, the rise in price of TSMC products affected Bitmain, the largest manufacturer of mining equipment. The Chinese company uses specialized 7nm chips supplied by TSMC in its line of Antminer S19 ASIC miners. On August 25, TSMC notified Bitmain of an immediate 20% price increase on semiconductor products. Naturally, the increase in prices of semiconductor products will affect the final cost of the company's equipment.

The Taiwanese company did not raise the price of wafers for several years, unlike other manufacturers. At the same time, the cost of raw materials continued to rise, and the pandemic had a negative impact on chip supplies, the Commercial Times noted.

Recall that such miner manufacturers as MicroBT, Canaan, Ebang and Innosilicon use 8-nm chips from Samsung.

Jack Evans

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I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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