China’s top Bitcoin ASIC manufacturers — Bitmain, MicroBT, and Canaan — are shifting production to the United States in response to heavy tariffs levied by the U.S. government. The move, reported by Reuters, comes as a strategic pivot to bypass a 25% import tariff that once reached over 100%.

According to Cambridge University’s April report, these three firms dominate the global ASIC mining market, with Bitmain holding an 82% share, MicroBT at 15%, and Canaan controlling about 2%. Combined, they make up 99% of all Bitcoin ASIC production worldwide, effectively forming an oligopoly.

The pressure to relocate manufacturing highlights growing geopolitical influence on the crypto industry. Jaran Mellerud, CEO of Hashlabs Mining, warned that continued tariffs could slash U.S. demand for mining rigs, shifting competitiveness to other countries. Despite these risks, the booming American Bitcoin mining sector has encouraged these Chinese firms to localize production, aiming to soften the blow of trade restrictions.

Still, major questions remain. U.S. facilities may struggle to match the cost-efficiency of Chinese production, potentially affecting market pricing and supply chains in the short term.

Bitmain has additional reasons to avoid trouble. In November 2024, U.S. Customs seized 10,000 of its mining units following a probe into its relationship with Xiamen Sophgo — a chipmaker allegedly tied to U.S.-sanctioned Huawei. The devices were only released in March after months of delays, prompting the company to seek safer ground within the U.S.

The move marks a major shift in Bitcoin infrastructure and a new chapter in the battle between economic policy and technological dominance in crypto mining.