The supply of silicon wafers is tightening, with GlobalWafers signing a 10-year agreement with Micron

GlobalWafers and Micron signed a 10-year deal to secure 12-inch wafer supply amid capacity saturation. This may increase hardware costs, potentially squeezing mining profits and yields.

GlobalWafers has signed a 10-year contract with Micron that includes an upfront payment, aimed at addressing the saturation of 12-inch wafer production capacity and rising pressures on spot prices. Although this deal relates to the hardware supply chain, market trends show a 0.6% increase in BTC’s price over 24 hours. Such long-term supply commitments may raise the costs of hash rate hardware, thereby affecting the operating profits of mining companies. If spot prices continue to rise above current levels, there is a need to be cautious about how rising hardware costs could impact the yield from mining activities.