Chinese Bitcoin Mining Giants Shift US Production
Bitmain, Canaan & MicroBT launch US production to dodge tariffs. A strategic shift in crypto mining supply chains.
- Bitmain, Canaan, MicroBT set up US factories to avoid Trump tariffs.
- US move reshapes crypto mining chain amid national security concerns.
- US miners face short-term import costs despite growing local output.
Three of the largest bitcoin mining hardware manufacturers—Bitmain, Canaan, and MicroBT—are shifting part of their production to the United States. This strategic move is driven by increased tariffs on Chinese technology, recently reintroduced under former President Donald Trump’s economic policy proposals.
The tariffs—10% base plus an added 20% on Chinese tech—make importing mining rigs costly. By producing in the U.S., these companies aim to reduce expenses and maintain their competitiveness in the global market.
Bitmain began its U.S. production in December following Trump’s election win. Canaan started a pilot assembly line shortly after the April tariff update, though it remains cautious due to possible future policy changes. MicroBT is also actively setting up operations stateside to localize its production process.
Why This Matters for the Industry
The move is not just about cutting costs—it has deeper implications for the crypto industry:
- It reflects a major shift in the global mining hardware supply chain, signaling a move toward decentralization of production.
- U.S. regulators and industry players have expressed concern over the national security risks posed by Chinese-made rigs.
- As crypto becomes a larger part of the energy grid and financial systems, having hardware made onshore becomes a strategic advantage.
Sophgo, an AI chip company affiliated with Bitmain, was recently blacklisted by the U.S. over security concerns. This has intensified calls for diversifying away from China-based supply chains.
Impact on U.S. Miners and the Future
While production ramps up in the U.S., local miners still face the reality of importing rigs and paying higher prices in the short term. However, in the long run, localized assembly could lead to more secure and cost-effective operations.
There’s also a political angle. Donald Trump has positioned himself as pro-crypto, but the dominance of Chinese-made mining rigs contradicts the narrative of national independence in technology.
The outlook suggests a slow but significant pivot in how and where crypto mining equipment is made. If tariffs continue or expand, this trend is likely to accelerate.
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