Canaan Completes US Pilot Production Run for Bitcoin Mining Chips

Bitcoin-focused ASIC maker Canaan declared success after concluding a pilot production run in the United States, while simultaneously discontinuing its AI semiconductor operations, in a strategic move prioritizing crypto infrastructure.

Speaking to media on Monday, a Canaan representative confirmed the successful replication of their Malaysia-based manufacturing operations within the US framework. This decision, framed as a “strategic realignment aimed at sharpening its focus,” signals a clear redirection of resources.

“Believing that doubling down on our core strengths in crypto infrastructure and Bitcoin mining is the most strategic path forward for Canaan,“ asserted Nangeng Zhang, the company’s Chairman and CEO.

Overcoming Cost Barriers and Geopolitical Concerns

Though acknowledging higher production costs in the United States compared to Malaysia, Canaan views its initiative as “a hedge against tariffs but a potential strategic investment in long-term resilience.” Proximity to the North American market promises benefits including improved delivery cycles, faster local demand response, and enhanced flexibility regarding future geopolitical or regulatory shifts.

Industry Trend and Tariff Uncertainty

Canaan’s effort forms part of an emerging industry trend, following reports that competitors Bitmain and MicroBT are also shifting production to the US. The statements follow recent disruptions, including the temporary halt of Bitmain shipments into the US due to investigation concerns.

The company’s representative emphasized that this US expansion is a long-term commitment, beyond just tariff avoidance. “We’re actively working to optimize our US cost structure with the goal of limiting production costs.” The move comes as products from Malaysia face a 10% tariff, creating uncertainty for imported components and raw materials.

Commercial viability for Canaan’s US operations will ultimately depend on achieving an optimal balance between cost management, customer demand, and the evolving landscape of import tariffs.

Addressing US National Security Standards

Addressing potential regulatory concerns, Canaan highlighted that its US market shipments are currently sourced from Malaysia but are certified locally. Should production expand within the US, the company intends to “ensure its operations align with evolving US standards for technology and security.”

Market Position: Canaan controls an estimated 2.1% share of the global Bitcoin mining ASIC market, according to the Cambridge Digital Mining Industry Report.