AI Governance, How Chips Act Impact Bitcoin Mining Equipment Manufacturers?

Ever since early 2020, the Chips Act was passed to restore the vitality and dominance of the semiconductor industry in the United States. This was done during President Biden’s tenure. Recently, according to a document released by the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), The United State further restricted particularly China’s access to semiconductor chips. Essentially, such regulations impose broader license requirements for Chip manufacturers and distributors. How does it impact the Chinese Bitcoin Mining Equipment Manufacturers as a whole?

What is An ASIC Chip?

ASICs are special computer chips made for a specific job or task. Unlike regular chips that can be used in many devices, ASICs are built for one particular purpose. In terms of quality mining equipment, In the world of quality mining equipment, crypto mining ASIC miners are designed specifically to mine cryptocurrencies like Bitcoin or Ethereum. These miners are much more efficient than regular computers, as they are optimized to solve complex calculations needed for mining, making them much faster and more powerful. You will have a concrete idea of how powerful an ASIC chip is because it is reflected in the hash rate and efficiency of your specific hardware mining setup.

How Does This Regulation Impact ASIC Miner Manufacturers and Distributors?

Within the  Export Administration Regulations (“EAR”) document, The U.S. Commerce Department has issued new rules to tighten controls on advanced computing and semiconductor manufacturing exports, particularly targeting China. To clarify these terms and conditions better, There are some of the highlighted new sanctions being imposed. The updated regulations now focus on two key changes: first, they tighten export restrictions on advanced computing chips, and second, they add several Chinese and Singaporean companies to the list of restricted entities. The new rules specifically target chips with 16nm/14nm process technology or lower, while also increasing due diligence requirements for foundries. This adjustment is especially impacting Chinese mining hardware manufacturers who rely on high-end chips. According to the new policy, TSMC has informed IC design companies in mainland China that, starting January 31, 2025, shipments of 16nm/14nm and below chips will be halted if they aren’t packaged through BIS-approved companies (only 24 companies are on this list). Additionally, companies will need to provide relevant certification documents for the shipment to proceed. Currently, 33 IC design companies are approved by BIS.

According to U.S. Secretary of Commerce,Gina Raimondo. This act reflects the Biden-Harris Administration’s commitment to working with our allies and partners to prevent China from building its advanced technology sector, which could threaten our national security. The Biden administration originally signed the CHIPS and Science Act to counter China’s growing influence over the production of ASIC chips.

What Are The Implications of Export Administration Regulations?

The new directives from the United States Department of Commerce will prove most significant for Chinese manufacturers of ASIC miners by limiting their access to advanced semiconductor technologies and valuable manufacturing equipment. This is what it means for them:

Restrictions on Access to Advanced Semiconductor Technology:

Chinese ASIC manufacturers produce their high-performance mining hardware with advanced chips (16nm/14nm process nodes or smaller). Under the newly announced export controls for semiconductor manufacturing equipment and software tools, Chinese manufacturers will find it even more difficult to procure the equipment necessary for producing these advanced chips, given that many of such tools have now been restricted. Since the ASIC chip is the most valuable piece within the mining rig, Chinese ASIC manufacturers, such as Bitmain, and Goldshell are going to have a hard time putting the vast majority of ASIC miners into production.

Supply Chain Disruption Occurrence:

With the addition of Chinese semiconductor companies to the U.S. Entity List, those companies will not witness easy sourcing of materials and technologies. Besides the prohibition, the companies that provide equipment and software for semiconductor production in the United States would not be able to sell to any entities on this list without a specific licensing agreement, the obtaining of which will likely be hard. There may be reduced ASIC Miners for purchase within a given period of time if the ASIC chip manufacturing process becomes delayed.

Chip Manufacturing Capacity Hits:

Advanced chip production requires tools which include etchers, deposition tools, and lithography machines. With such tools hard to come by, it will make it difficult for Chinese manufacturers to set up or expand semiconductor fab facilities that can accommodate the production of high-end chips. These bottlenecks would result most likely in a delay in the production cycle of next-gen ASIC miners which require really advanced chips.

Costs for Manufacturing Mining Rigs May Go Up:

Chinese ASIC manufacturers are expected to pay more to develop mining hardware since the options for sourcing cutting-edge technology will diminish. They may have to resort to producing chips with lowered hashrate and pay an excessive amount of money and resources to acquire components from other sources, therefore, increasing the price of mining equipment itself. Potential production delays for some new mining rigs or, in the worst-case scenario, entire product lines being canceled because high-end chips or equipment could not be sourced.

In short, to navigate these restrictions, Chinese manufacturers may focus on developing domestic technologies and building their semiconductor supply chains. However, this will take time and resources, and catching up with global competitors will be challenging without access to advanced manufacturing tools.

The Logistics Coordinator For ASIC Miner Manufacturing Company

Given the current response to this new commerce regulation the U.S. has just imposed, BT-Miners has communicated as a logistic coordinator for our beloved customers. There is a detailed breakdown of the current situation of major mining machine manufacturers:

IceRiver AEO ALEO Miner:

The IceRiver AELO miner, known for its 50Mh/s hashing power and low power consumption, has garnered significant attention. However, its chip process may fall within the restricted range of the new regulations. Due to supply chain limitations at TSMC and other foundries for mainland Chinese companies, it’s uncertain whether the originally scheduled March delivery can be met.

Goldshell: Stable Manufacturing Supply Chain:

Goldshell recently announced the specifications and sales plan of its AE BOX miner, which was launched for sale on February 7th as planned. Unboxing review videos of the product have also been circulating on various social media, suggesting the company’s supply chain continues to be largely unaffected. Still, the long-term effect of the new regulations would need to be closely watched.

VolcMiner D1: Stable Supply Chain In the Short Term:

VolcMiner D1: They have a stable short-term supply chain, but Potential Risks Ahead The VolcMiner D1 is still in stock, but its chip process may also be impacted by the new rules. While current production remains stable, the miner could face delivery delays in the future if the supply chain isn’t adjusted accordingly. BT-Miners will keep our valued customers updated with the most relevant updates.

BT-Miners Recommendation For Picking A Bitcoin Mining Equipment

When picking out your Bitcoin mining machine for the first time, it is important to stay updated with current cryptocurrency mining industry trends. Alternatively, you can stay up to date with BT-Miners’ latest announcements on our Twitter channel for a chance to receive additional free coupons and news updates. If you are on the hunt for a brilliant dogecoin miner, the DG Max checks all the criteria for a proficient miner. If you are looking to maximize your profitability in the short term time frame, ElphaPex DG1+ should be your go to choice. If you are serious about bitcoin mining, please check out our Antminer L9 miner, it is a proficient miner for professionals.

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