Demand for a variety of components is increasing as the market responds to blockchain cryptocurrency Chia. The new platform leverages unused storage space on a hard drive to farm cryptocurrency as new blocks are released, which is stimulating supply need for computer storage and processors.
This comes at a time when Bitcoin, Filecoin and other cryptocurrencies have already become a large segment of the market requiring high capacitance storage and memory modules. Global supply for these components continues to be tight across the industry as raw material shortages impede output and production issues have taken fabs offline or rendered plants unable to meet capacity demands.
Currently, CPU, GPU, SSD and HDD components are affected as global supply tightens because of shortages and production issues amidst the current cryptocurrency boom.
Chia markets itself as a different approach to blockchain software as a platform that is easy to audit and secure. Chia is creating a frenzy in the Chinese market, which is battling component allocation from manufacturers and cryptominers.
Current market volatility is not projected to stabilize anytime soon, and growing interest in Chia as well as other cryptocurrencies continues to challenge the global components supply chain.