Part 7/16:
Technical and Infrastructure Challenges in Mining
The conversation increasingly turns to supply chain bottlenecks, notably chip shortages. Nick explains how TSMC—the premier manufacturer of chips for ASICs—has limited capacity, impacting the production of mining hardware. Political tensions in geopolitics, especially regarding Taiwan and China, compound these supply constraints.
Luxor has bought some miners but faces difficulties in sourcing new equipment. They highlight how geopolitical issues, such as China's crackdown, disrupted the supply chain profoundly, prompting miners to move equipment abroad, especially to Southeast Asia and the US. Building new foundries, like TSMC’s upcoming Arizona facility, is pivotal for the industry’s resilience.