Bitmain May Lose Chip Supplier

Bitmain is a bitcoin mining manufacturer that will no longer be receiving chips from its supplier, called Taiwan Semiconductor Manufacturing Company TSMC. The platform’s relationship with TSMC is not in good shape, as the company is in arrears in the amount of over $300 million. Bitmain has, at one point, owed TSMC over $1 billion, but it was only able to pay $700 million.

The news of the debt comes two months after a market research firm published a report that suggested that ASIC’s prospects were in poor condition. TSMC has not commented concerning Bitmain’s debts, but it is unlikely that TSMC will continue doing business with Bitmain. As one source stated,

“If TSMC continues to do business with Bitmain, they’ll require a good behavior bond. Their chips will slow to market as they won’t start work until they’ve received payments for future orders in full.”

There have also been discussions that Bitmain may be considering reaching out to another manufacturer, Samsung. It may be the case though that Samsung is not interesting in working with a company that has a poor relationship with past suppliers.

Jihan Wu of Bitmain is also considering how to pay off the company’s debts. Right now, Bitmain’s IPO is in doubt as well. It looks like Wu is also renting hash power from BTC miners and has also moving the hash to the BCH chain. This project requires that when a mercenary miner mines a block, then Bitmain is required to pay them in BTC. Bitmain may be able to receive the BCH block rewards that are mined, but the issue is that the BCH payouts would be worth less in monetary value than what it would pay with BTC. At this point, BCH is in the $550 range and BTC is at $6200.

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