Facing punishing new US tariffs, China’s dominant Bitcoin mining machine makers are making a strategic pivot. Following this change Bitmain, Canaan, and MicroBT are launching production inside the United States. These three firms produce over 99% of the world’s specialised Bitcoin mining computers, called ASICs. Therefore, this move directly counters rising import costs threatening their crucial American market.
Trade Pressure
The decision stems directly from significant US tariff increases. Previously, tariffs on Chinese imports often exceeded 100%. However, recent policies added a 20% levy specifically targeting Chinese goods. This creates a total 30% duty for vital tech imports like Bitcoin ASICs.
Importing these expensive machines became far costlier for US miners. Bitmain alone commands a massive 82% global market share. MicroBT follows with 15%, and Canaan holds 2.1%. Together, they control virtually the entire supply. Their US production aims to bypass these steep import fees entirely.
Geopolitics Drives a New Era in Crypto Mining
Geopolitics constantly influences Bitcoin mining. Hashlabs Mining CEO Jaran Mellerud highlighted this reality back in April. He warned Trump administration tariffs could collapse US demand for mining rigs. Furthermore, Mellerud predicted the tariffs would benefit non-US mining operations.
Manufacturers might sell surplus inventory abroad cheaper. Still, the US Bitcoin mining industry is booming powerfully. Therefore, Bitmain, Canaan, and MicroBT chose to enter the US market directly. They seek to lessen the tariffs’ economic sting. Nevertheless, a major question remains. Can US factories produce ASICs as cheaply as Chinese facilities?
US Production Timelines
Each manufacturer is progressing with distinct US plans. Bitmain, the undisputed market leader, started earliest. It initiated US production in December 2024. This followed Trump’s re-election and the tariff reinstatement.
Bitmain seeks to avoid costs and resolve supply disruptions. Previously, customs delays stranded its ASICs at US ports. Canaan, holding a smaller market share, began more cautiously. It launched pilot production stateside in early 2025. Canaan’s VP, Leo Wang, cited cost reduction for the company and clients. MicroBT is actively implementing its US localisation strategy. Efforts began as early as 2022 but accelerated significantly this year. MicroBT confirmed its plans to Reuters, emphasising proximity to North American clients.
Challenges for US Manufacturing
Despite the strategic shift, significant hurdles exist. First, production costs inside the US are inherently higher. Labour and operational expenses exceed those in China substantially. Therefore, matching Chinese ASIC prices seems difficult initially. Second, scaling presents a major challenge. Current US facilities are relatively small.
Canaan’s operation is merely a pilot line. Expanding sufficiently will require massive investment and time. Third, reliance on imported components persists. Many parts still come from China or elsewhere. Proposed tariffs on these raw materials could reach 125%. This might erase savings from local assembly. Finally, security scrutiny adds another layer. US regulators may closely monitor these Chinese firms’ operations. Past customs investigations highlight ongoing tensions.
The Road Ahead
Chinese Bitcoin ASIC giants are undeniably establishing US beachheads. They aim to protect their access to the world’s largest mining market. However, success is not guaranteed. Matching China’s manufacturing efficiency poses a steep challenge. Production costs and scalability remain serious concerns.
Now the global Bitcoin network watches closely. This move could reshape mining hardware supply chains significantly. Ultimately, US miners hope for affordable, readily available machines. Only time will tell if domestic production delivers.
Written By Fazal Ul Vahab C H
