TSMC: Bitcoin Demand For Next Two Years Is Quite Considerable
Taiwan Semiconductor Manufacturing Co Ltd(TSMC), world’s largest contract manufacturer of semiconductors, undoubtedly, is the real winner of bitcoin mania as bitcoin miners rush to purchase its HPC chips. It is estimated that TSMC has taken over 90% of the market share in bitcoin mining chip production, according to Taiwan Mirror Media. In the aftermath of recent bitcoin sluggish, TSMC is still bullish on its mining chip business, saying demand for bitcoin mining in the next two years is quite considerable.
Stan Shih, independent director of TSMC and founder of Acer, said,
Clients would like to choose TSMC for the reason that it leads in technology and process, and performs well in delivery.
There’s a common problem for many Taiwan companies, that is, they do not invest the future. While TSMC is making relentless effort to make investment in new technologies and process. In this sense, only TSMC could seize the opportunity to provide the market needed bitcoin mining chips and secure a strong footing in the marketplace.
Although bitcoin had gone through several corrections since entering 2018, director of TSMC thinks bitcoin is currently still at a good price. As long as bitcoin price is above the cost of mining, it could provide growth impetus for mining-related business and the business opportunity will last and last. So what on earth is the cost of a mining machine? He refused to disclose it, but responded that
The demand for the next two years is quite considerable, according to an internal assessment of the company.
It was early reported that the production cost for an AntMiner is only 3,000 yuan ($470) but sold at $4,226, according to an interview with mining machine retails in Huaqiang North Commercial Area (one of China’s largest electronic markets based in Shenzhen).
The bitcoin mining boom has stimulated a 38% boost in TSMC’s market value over the past year to $212 billion. According to the Q3 quarterly earnings, the company generated around $350 million from cryptocurrency mining business. And its net profit in Q4 reached $4.4 billion.
That explains why Samsung joins the turbulent race to have a share with TSMC in mining chip production.