Bitcoin ASIC producer Canaan pilots US production, exits AI business

Bitcoin mining application-specific integrated circuit (ASIC) manufacturer Canaan has completed a pilot production run in the US and abandoned its AI hardware manufacturing efforts.

In a statement sent to Cointelegraph on Monday, a Canaan representative said the firm “has successfully completed a pilot production run in the US,” replicating its Malaysia-based operations. Canaan also announced the discontinuation of its AI semiconductor business on Monday in what it said is “a strategic realignment aimed at sharpening its focus.”

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

A Canaan representative acknowledged that production costs are higher in the US, but said that the company views “this initiative not just as a hedge against tariffs but as a potential strategic investment in long-term resilience.”

Producing closer to the North American market, the firm added, will help improve delivery cycles, respond faster to local demand, and navigate future geopolitical or regulatory shifts.

Canaan controls 2.1% of the Bitcoin mining ASIC market. Source: Cambridge Digital Mining Industry ReportThe statements follow recent reports that Bitmain, Canaan and MicroBT — which collectively produce most of the world’s Bitcoin mining ASICs — are bringing production to the US.

Related: The quiet ascent of at-home Bitcoin mining — Interview with Canaan

Canaan’s US foray is a long-term effort

Canaan’s representative noted that producing Bitcoin mining ASICs in the US is part of a long-term effort, and is more than just a response to tariffs:

“We’re actively working to optimize our US cost structure with the goal of limiting production costs.“

The representative said the company’s products manufactured in Malaysia are currently subject to a 10% tariff. When it comes to imported components and raw materials, the tariffs are less clear, which makes expense planning difficult.

For this reason, Canaan’s US expansion “will ultimately depend on achieving commercial viability through a combination of cost management, customer demand and clarity around the tariff environment.”

Related: Bitcoin ASIC maker Bitmain expands production line into US

Canaan promises compliance

The company addressed potential concerns over U.S. national security standards, highlighting that its devices shipped to the United States are produced in Malaysia and certified by local authorities. The representative added:

“Should we expand our US production further, we intend to ensure that our operations align with evolving U.S. standards for technology and security.”

The comments come after the US Customs and Border Protection Agency halted the delivery of thousands of Bitmain ASICs in November 2024, following an investigation by US authorities into Chinese chip designer Xiamen Sophgo over an alleged business relationship with US-sanctioned telecommunications firm Huawei. The devices were only recently released.

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