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China closes GPU board factories due to Omicron contagion

New closure in the Chinese city of Suzhóu due to an outbreak of the Omicron variant, affected the supply and distribution of graphics cards (GPUs) used to mine cryptocurrencies.

New cases of Omicron contagion has led Chinese authorities to temporarily close companies in industrial cities, such as Suzhóu, according to information from Reuters.

Suzhou is home to one of the companies that manufacture components that are indispensable for the production of computer components, such as power management integrated circuits (PMICs).

These chips have the task of controlling the voltage of all electronic circuits.

They are usually found inside motherboards and graphics cards used for mining Ethereum and other cryptocurrencies.

Among the products affected by this GPU card shortage is NVIDIA’s RTX 3090 Ti graphics card, which is used massively for Ethereum mining.

Added to the shutdown, a problem at the distribution level is decanted. Transportation has been limited and caused significant congestion. This resulted in increased costs and price hikes, in addition to impending shortages.

Alarmingly, the situation could easily extend into next year.

It is therefore foreseeable that companies in other countries will opt to manufacture their own chips. However, due to the complexity of the situation, it may take several months for a solution to materialize.

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