Chinese Bitcoin ASIC manufacturers, including Bitmain, Canaan, and MicroBT, have decided to move production to the US in response to import tariffs from China.
Tariffs on Imports and manufacturers' Response
According to a report by Reuters, the shift in production comes as a response to hefty reciprocal tariffs imposed on goods imported from China. Tariffs, introduced by US President Donald Trump, currently stand at 25% and have previously exceeded 100%.
Market for Bitcoin ASIC Production
A study by the University of Cambridge indicates that Bitmain is responsible for 82% of ASIC production for Bitcoin, MicroBT for 15%, and Canaan for just 2%. Collectively, these three companies hold a 99% share of the global market. "The digital mining hardware market exhibits an oligopolistic structure, with the top three manufacturers — Bitmain, MicroBT, and Canaan — commanding over 99% market share," the study states.
Geopolitical Influence on Bitcoin Mining
Hashlabs Mining CEO Jaran Mellerud noted that the tariffs imposed by Trump could lead to a collapse in demand for mining equipment in the US. However, given the booming Bitcoin industry in the US, manufacturers have opted to establish production in the country to mitigate the economic impact of the tariffs.
Thus, the decision to relocate ASIC production for Bitcoin to the US is a direct response to tariff pressures. However, it remains to be seen if these devices can be produced at competitive prices.
