Top Bitcoin ASIC producers shift to US manufacturing due to tariffs.
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Chinese Bitcoin ASIC Producers Expand to US Due to Tariff Challenges
Leading Bitcoin mining hardware manufacturers Bitmain, Canaan, and MicroBT, responsible for over 99% of the global Bitcoin ASIC market, are setting up production facilities in the United States. This strategic move comes in response to significant tariffs on Chinese imports.
Production Shift Amidst Tariff Pressures
Related: Canan's Growing North American Bitcoin Mining Operations with Hive
According to a recent report by Reuters, the decision by these companies to establish manufacturing operations in the US is a direct result of the reciprocal tariffs imposed by the United States on Chinese goods. Currently, these tariffs are set at 25%, a significant decrease from previous levels that exceeded 100%.
A University of Cambridge study from April highlights that Bitmain controls 82% of the Bitcoin ASIC production, MicroBT holds 15%, and Canaan accounts for about 2%, collectively dominating the market.
Related: US Government Imposes Import Restrictions on Bitmain ASIC Mining Equipment
Geopolitical Influences on Bitcoin Mining
The interplay of geopolitical factors in Bitcoin mining is not new. Jaran Mellerud, CEO of Hashlabs Mining, pointed out in April that these tariffs might reduce US demand for mining rigs, potentially benefiting operations outside the US. However, the thriving US Bitcoin industry has prompted these companies to localize production to mitigate tariff impacts.
Whether US-based facilities can match the cost efficiency of Chinese production remains uncertain.
Related: Bitmain Unveils S21 Bitcoin Mining Rigs with Up to 473 TH/s Hashpower
Bitmain Navigates US Market Challenges
As the leading ASIC manufacturer, Bitmain is also working to overcome challenges posed by US customs. In late 2024, US Customs and Border Protection halted shipments of Bitmain ASICs due to an investigation into Xiamen Sophgo, a Chinese chip designer linked to Bitmain and involved with the US-sanctioned Huawei. This led to a temporary seizure of around 10,000 ASIC units, which were released in March after resolution.
This expansion into US production is a strategic response to geopolitical and economic pressures, aiming to ensure continued market presence and competitiveness.
John is a renowned journalist and blockchain enthusiast with over 12 years of experience covering global financial trends and cryptocurrency markets. His sharp insights and ability to break down complex topics make him a cornerstone of finandcrypto.com. Known for his analytical skills, John is passionate about delivering content that empowers the crypto community.
