Canaan starts US Bitcoin ASIC production and ends AI chip business

Bitcoin (CRYPTO:BTC) mining hardware maker Canaan has completed a pilot production run of its ASICs in the United States and announced its full exit from the artificial intelligence (AI) chip business.

The company said the move is part of a broader strategy to refocus on core operations in crypto infrastructure and Bitcoin mining.

“I believe that doubling down on our core strengths in crypto infrastructure and Bitcoin mining is the most strategic path forward for Canaan,” Canaan Chairman and CEO Nangeng Zhang stated.

While the company acknowledged that producing in the US carries higher costs than its Malaysia facility, it sees the pilot program as a hedge against tariffs and a long-term investment in resilience.

Manufacturing closer to North American customers is expected to improve delivery times and provide greater flexibility in navigating geopolitical and regulatory challenges.

Canaan currently accounts for about 2.1% of the global Bitcoin mining ASIC market, based on data from the Cambridge Digital Mining Industry Report.

The company noted that future US production depends on factors such as customer demand, production cost control, and tariff policy clarity.

“We’re actively working to optimise our US cost structure with the goal of limiting production costs,” a company spokesperson said.

Canaan also emphasised compliance with US national security standards, stating that its Malaysia-produced ASICs are certified locally before shipment to the US.

The company added that any potential expansion of US production will be aligned with evolving American technology and security regulations.

This shift comes amid increased scrutiny of Chinese chipmakers and growing efforts among major ASIC producers to localise manufacturing.

Bitmain and MicroBT have also expanded US production to address similar concerns, including shipping delays and potential sanctions.

The US Customs and Border Protection Agency recently halted Bitmain shipments as part of a probe into links with sanctioned Chinese firms, highlighting regulatory risks faced by global mining hardware suppliers.

At the time of reporting, the Bitcoin (BTC) price was $104,913.