Bitmain, Canaan, and MicroBT Shift Production to the US Amid Trump Tariffs

The three biggest Chinese companies that produce rigs to mine bitcoin have begun manufacturing hardware in the US: Bitmain, Canaan, and MicroBT. This is a reaction to new tariffs introduced by President Trump on the innovations and imports of the Chinese technology during his second term

ContentsChinese firms navigate trade barriers with strategic relocationHardware dominance sparks security concerns in the USTrump’s crypto push faces challenge from Chinese mining monopolyThe firms control more than 90 percent of global production of mining rigs and are attempting to enjoy the market penetration without incurring the high importation prices. Bitmain led the transition by beginning assembly operations in the US shortly after the 2024 election. Canaan followed soon after, launching a test production line aimed at avoiding the 30% total import tax on Chinese-made equipment. MicroBT, the third-largest supplier, confirmed it is actively working on a US localization strategy to reduce the financial burden caused by trade restrictions.

Chinese firms navigate trade barriers with strategic relocation

Executives from these firms described the US projects as strategic responses to an unpredictable regulatory climate. Canaan’s vice president, Leo Wang, said their US manufacturing efforts are still exploratory due to the ongoing uncertainty in trade policy. The companies are prioritizing customer retention and safeguarding their global sales as tensions between the US and China increase.

According to industry experts, the changes underway are more than short-term responses. Conflux Network CTO Guang Yang said the US-China trade conflict is causing permanent shifts in Bitcoin’s global supply chain. He noted that American firms are now looking for politically safer hardware sources to meet rising regulatory and security expectations.

## Hardware dominance sparks security concerns in the US

While North America now accounts for more than 30% of global Bitcoin mining, over 90% of mining rigs still originate from China. Frost & Sullivan data indicates that Bitmain, Canaan, and MicroBT supplied 95.4% of global mining power by the end of 2023. This near-total market share has raised alarm among US hardware companies and lawmakers.

Auradine executive Sanjay Gupta warned that the widespread use of Chinese rigs connected to the US electrical grid could present a national security risk. In contrast, Canaan’s Wang insisted the machines pose no threat, explaining they serve only one purpose. However, Bitmain’s AI unit Sophgo has already been sanctioned by the US government over security concerns.

Trump’s crypto push faces challenge from Chinese mining monopoly

While Trump promotes a domestic crypto agenda and has aligned with projects like American Bitcoin, the industry’s reliance on Chinese-made rigs remains a critical vulnerability. Legal experts warn that any disruption in exports from China could impact Bitcoin’s operational stability and expose US users to risk.