Omicron contagion outbreaks forced the authorities to shut down the city. The chips manage the voltage of the circuits found in the graphics cards.
COVID-19 has vanished from the world and continues its wave of damage in the cryptocurrency industry. Another shutting down in the Chinese region of Suzhou due to a new wave of contagion of the omicron variant would have impacted the supply of PMIC chips, a required item for the production of digital mining hardware.
According to information revealed by the Reuters agency, the proliferation and contagion have led the Chinese entities to shut down companies in industrial regions like Suzhou temporarily.
In that city, whose industrial park is famous worldwide for giving 100,000 transnational companies to execute their activities, one of those companies fabricates components to build computer parts, such as integrated power management circuits.
These chips can control the voltage of all electronic circuits. They have their place inside motherboards and graphics cards; the latter serves for mining Ethereum and other digital assets.
After a new rise in cases of omicron, a new variant of COVID-19, one of the most contagious ones, the authorities decided to shut down the industrial entities in Suzhou, consequently lowering the supply of the PMIC chip.
An Incredible Impact on the Products
The products harmed by this measure are about to get released on the market, as the RTX 3090 Ti graphics card from NVIDIA. These GPUs are the most famous because they make mining activities with Ethereum easier.
On the other hand, a problem at the distribution level adhered to the shortage of material. Transportation is now facing limitations caused by congestion and hikes on costs and prices to impede the scarcity.
The situation could expand its tentacles until next year. Therefore, various entities from other nations choose to fabricate their own devices. However, it may take several months to find a way to solve this situation due to its complexity.
China and its Stance about the Current Conflict between Ukraine and Russia
The Chinese government approached all sides to de-escalate tensions in Ukraine. But now that Russia got ready to keep moving forward, it is uncertain where is China’s official position as clashes keep escalating.
The Chinese government believes they should not support warfares in Europe but also wants to unify military and strategic bonds with Moscow. On the other hand, Ukraine’s number one associate is China, and Beijing would ideally like to sustain these good relationships with Kyiv. Still, this bonding could be challenging to maintain because both countries in conflict have potential relationships with the Asian giant.
There is also the possibility of a consequence on China if Western Europe observes the Asian nation backing Russia’s aggression. Moreover, a constant stance of China’s leaders is that the country should not get in the way when it comes to the internal affairs of other nations and that other nations should not obstruct China’s way regarding its internal conflicts.
By: Jenson Nuñez
