Crypto Mining Suppliers See Dim Growth Prospects For the Second Half of 2018
Taiwan makers of mining graphic cards and motherboards see dim growth in their revenue and profit prospects for the second half of 2018 affected by the sustained crypto mining chill.
After rallying to a record high of near US$20,000 in mid-December 2017, the price of bitcoin plunged under US$6,000 in early February 2018 and then fluctuated within the $6,000-7,000 range later, with possible price hike momentum dampened by exposures of trading frauds, doubts about trading security, and crackdowns by governments of many countries on illegal market manipulations.
Supply chain sources said the mining sector is still lackluster as demand for mining devices continues to lose steam on little investment gain, prompting them to return to the gaming sector to seek growth momentum, according to Digitimes, a Taiwan-based IT news outlet.
As mining gains continue to decline, small-scaled mining farms started to quit the market in April while quite a few medium and large-scaled 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.
some encouraging news has instilled a strong boost to the crypto sector recently. Over 10,000 mining machines were inundated by heavy rainstorm in the southwestern China province of Sichuan, where is called the “bitcoin mining capital of China”, triggering a new wave of rush orders for GPU- and ASIC-powered machines from China.
Another breaking news is that investment giant BlackRock acknowledged an interest in cryptocurrency and blockchain, which triggers speculation that the $6.3 trillion asset management company is looking to march into the crypto sector.
However, the mining supply chains seems insensitive to that, the aforementioned sources said that the cool mining fever is expected to last into the second half of 2018. Besides suppliers of mining graphic cards and motherboards, 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, as well as China’s three major suppliers of mining ASICs Bitmain, Canaan Creative and Ebang Communication, will also see their revenue performances more or less affected by the sustained mining chill.