The last year’s bear market is still proving to be quite expensive. The dip in the crypto mining hardware demands due to the bearish market last year is causing a great deal of discomfort for the businesses that deal with manufacturing of the crypto mining hardware. As desperate measures, these companies are now seeking for other revenue options.
The past glorious days and the decline-
From around mid-2017 to 2018, mining hardware manufacturing industry was soaring in pride. Last year too, it was reaching newer heights. The high demands obviously made it a much sought after field, and the manufacturing companies were breaking sales records one after another. One such supply chain manufacturing mining devices company is Taiwan Semiconductor Manufacturing Company (TSMC). But the whirlpool of the bear market trend from last year plagued this success and is now bringing it down to its knees.
BTC resurgence couldn’t uplift Taiwan’s crypto mining supply chain
Even the recent upwards trend in the Bitcoin rates failed to help this industry. The graphics card makers, the ASIC suppliers from Taiwan, are not able to see any ray of hope lately, from the crypto mining industry.
Although the upsurge in the Bitcoin prices was a sign of the greater adoption of the cryptocurrencies and the related assets overall, but it could not form any direct connection with sales of graphics cards industry. The suppliers of the chips and components also reported about the same downward trend in the mining equipment manufacturing orders.
Key players facing a tough time-
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The main key players in the sector such as Asustek Computer, Micro-Star International (MSI), Gigabyte Technologies and Tul, as a result of the bear market, are now keenly trying to clear all the inventories regarding the crypto mining hardware sector. ON the other hand, China’s ASIC system suppliers, for example- Bitmain Technologies, Canaan Creative, and Ebang, have also confirmed about the decline and the related earnings. Further, these companies have also canceled the IPOs release in Hong Kong, which was pre-planned. As a result of this downward trend, ASIC system supply chain manufacturers from Taiwan such as TSMC, Global Unichip, Faraday, etc., will not be able to reap any benefit from Bitcoin’s recent upsurge.
The fall in sales prices-
According to some reports, the Taiwanese crypto mining suppliers of GPUs (graphics processing units) sales rates are going against the evolution and are dropping till 2017 rates. There are predictions saying that there are chances of these GPU suppliers to embrace the gaming market if they want to climb up on the growth ladder.
The dip in the GPUs demands has resulted in Wells Fargo Securities to cut down the potential benefit for Nvidia. Following the trail, TSMC also halted its potential earnings after seeing the decline in the demand. Gigabyte Technology from Taiwan is also planning to sell less number of motherboards due to the constricting demands, as per some reports.
Is turning AI, a solution for the ASIC manufacturers?
The imbalance has naturally thirsted the manufacturers to explore new alternative routes. On this, the co-founder executive officer of Bitmain- Jihan Wu said that the company would start to “deploy lots of artificial intelligence products into the market,” in response to the company’s plans for the coming years. The company wants to invest in research and development of mining.
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Bitmain is not the only one seeking reliance on AI. Canaan Inc, on the other hand, is too reclining towards it. The company is seeking to produce chips for AI applications. The move should expectedly help the company to have a new direction to focus on and start to gain the profit momentum soon.
