Bitmain, Canaan, and MicroBT — the three dominant manufacturers of Bitcoin mining application-specific integrated circuits (ASICs) — are shifting their production to the United States, according to a Reuters report published Wednesday.
This move is a response to steep tariffs imposed on Chinese imports under former U.S. President Donald Trump’s trade policies. These tariffs currently sit at 25%, after having previously surged past 100%.
An April study by the University of Cambridge reveals that Bitmain accounts for 82% of global Bitcoin ASIC production, MicroBT for 15%, and Canaan around 2%, giving the trio a combined market share of 99%.
The study states that the digital mining hardware market displays an oligopolistic structure, with the top three manufacturers — Bitmain, MicroBT, and Canaan — controlling more than 99% of the market share.
Geopolitical Influence on Bitcoin Mining
As a global network, Bitcoin has long been influenced by geopolitical dynamics, and recent developments are no exception. In early April, Hashlabs Mining CEO Jaran Mellerud noted that the Trump administration’s broad tariff measures could significantly reduce U.S. demand for Bitcoin mining rigs.
Mellerud explained that the tariffs might give an advantage to mining operations outside the United States, as manufacturers would likely offload excess inventory abroad at more competitive prices. However, given the rapid growth of the U.S. Bitcoin industry, major manufacturers have chosen to establish domestic production facilities as a strategy to offset the economic strain caused by the tariffs.
Whether U.S.-based facilities can match the cost-efficiency of ASIC production in China, however, remains uncertain.
