Canaan, a manufacturer of Bitcoin Mining Application-specific Integrated Circuits (ASICs), has completed pilot production in the US and has abandoned its AI hardware manufacturing efforts.
A Canaan representative recreated the Malaysia-based business in a statement sent to Cointelgraf on Monday, saying it had “successfully completed pilot production in the US.” Canaan also announced the cancellation of its AI semiconductor business after saying it was a “strategic reorganization aimed at reducing focus.”
Nangen Chan, chairman and CEO of Canaan, said:
A Canaan representative acknowledged the high production costs in the US, but said the company viewed “the initiative not only as a hedge against tariffs, but as a potential strategic investment in long-term resilience.”
The company will help it improve its delivery cycle, respond quickly to local demand and navigate future geopolitical or regulatory changes when it comes to production close to the North American market.
The statement follows a recent report that Bitmaine, Canaan and Microbeat, which collectively produce the majority of Bitcoin Mining ASICS around the world, brings production to the United States.
Related: The Quiet Rise of Home Bitcoin Mining – An Interview with Canaan
Canaan's US expansion is a long-term effort
Canaan 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 are actively working to optimize the US cost structure with the aim of limiting production costs.”
The representative said that the products of the company manufactured in Malaysia are currently subject to 10% tariffs. With regard to imported components and raw materials, tariffs are less clear, making cost planning difficult.
Therefore, Canaan's US expansion “ends to be dependent on achieving commercial viability through a combination of cost management, customer demand and clarity regarding the customs environment.”
Related: Bitcoin Asic Maker Bitmain expands production line to the US
Canaan promises compliance
The company addressed potential concerns about US national security standards, highlighting that devices shipped to the US are produced in Malaysia and certified by local governments. Representative added:
“If we expand our production in the United States further, we will ensure that our operations are consistent with the evolution of US standards for technology and security.”
The comments come after the US Customs and Border Protection Agency suspended distribution of thousands of bitmain ASICs in November 2024, followed by an investigation by US authorities by Chinese chip designer Xiamen Sophgo, and investigating alleged business ties with US licensed telecommunications company Huawei. The device was recently released.
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