How Does the Centralization of ASIC Manufacturing Affect the Risk of a Single Point of Failure?
The ASIC manufacturing industry is highly concentrated, with a few major companies dominating production. This centralization creates a single point of failure risk.
If one of these manufacturers faces a production halt, geopolitical disruption, or regulatory sanction, the entire global supply of new, efficient mining hardware can be severely constrained. This affects network hash rate growth and concentrates power in the hands of the few remaining suppliers.
