Chinese Bitcoin ASIC makers to begin US production amid tariff pressure

[_act_]

Bitmain, Canaan and MicroBT are producing 99% of the world's ASIC but they are manufacturing the mining hardware from China. Due to tariff war pressure from Trump, they also want to be producing the mining hardware from United States.

https://cointelegraph.com/news/producer-behind-90

Possibly Trump tarrif war is working?

[Fortify]

Bitmain, Canaan and MicroBT are producing 99% of the world's ASIC but they are manufacturing the mining hardware from China. Due to tariff war pressure from Trump, they also want to be producing the mining hardware from United States.

https://cointelegraph.com/news/producer-behind-90

Possibly Trump tarrif war is working?

Every major business is making attempts to *look* like they are bringing business back to the US and as the article mentions, it's more likely that previously existing sanctions played a roll because US customs seized around 10,000 units for a period of time due to an alleged relationship with a sanctioned Chinese entity - slightly different from tariffs. There could be an element of long term strategic planning for these businesses because if Taiwan and China eventually go to war, they'll want a manufacturing base that isn't going to get knocked out (aka where the chips are produced) but I also don't know if many rare metals are used in this manufacturing process - the flow of which is being restricted by China which might making onshoring economically unfeasible. Best case scenario is they diversify their manufacturing base, appease the almighty king and can produce at a reasonably competitive rate, worst case scenario they invest a lot on this project, realize the margins are negative or completely unworkable but still get hit by tariffs later on.

[Z-tight]

It is something they were expected to do, tariffs on Chinese imports into the U.S. is at 25%, this will significantly impact the price of Asics imported from China and would reduce the demand coming from the U.S., so the wise thing to do is to set up a production unit in the United States. We'll have to keep on eye on this one and see how successful it will be when operational and also if the price of the gears would be similar to what is produced in China.

[robelneo]

Possibly Trump tarrif war is working?

They foresee that Trump is not going to change his tariff policy, and they do not want their profit to suffer at the same time; they want their product to remain competitive in the market in terms of price.
Trump's tariff is making a huge impact on how big companies and business do their business. we'll see if this strategy will work in their favor in the long term, as we all know labor is cheaper in China than the US.

[Darker45]

This is still a plan that may be shelved anytime, right? The tariff war has subsided a lot. Trump has taken back his earlier threats. They were hollow, anyway. From up to 245% to 125% to what now, 50%? Bitmain and others might not proceed with the plan, then.

It isn't working in the sense that it's not happening, at least not yet. And despite the tariff and the fact that the US is the largest contributor of Bitcoin's hashrate, China is producing 99% of the world's ASIC. High tariffs are supposed to strengthen domestic production. It hasn't in this case.

[JeffBrad12]

Producing ASIC miner in a country where they ban mining doesn't make sense in the first place.

They could've gone to cheap manufacturing country like in southeast asia, but now that they have trump imposing tariff everywhere, US is the best place to manufacture.
I also think they can move manufacturing to vietnam if the 0% deal truly happening.

[Z-tight]

High tariffs are supposed to strengthen domestic production. It hasn't in this case.

Yeah, but it is almost impossible for local producers to compete, the dominance of Bitmain, MicroBT and Canaan in Asic production is as high as 99%, so most of the American market still need their gears from China.

Nobody is sure if they will eventually go on with this plan, but if this tariff war continues, they have to, in order to serve their customers in the U.S. at a resonable price, because there is a significant demand for Asic in the U.S.

[justdimin]

Possibly Trump tarrif war is working?

Basically all less number of low level labours required products or fully automated process based products can be produced within USA because wages is the core concern why USA companies are out sourcing. But, I am not sure that this will make USA great in terms of less unemployment crisis. I mean USA must need new jobs in highly paying areas which cannot be created overnight, when this is not happening I disagree about the plans of Trump is working.

When a society is highly educated and having higher skill set (or white collar skills), they obviously would not prefer low level jobs. When such mandatory low skill jobs are open, either immigrants will take that or such jobs will be out-sourced if feasible. So I do not think that these Trumps' policies are practical to work for a sustaining economy.

[_act_]

It isn't working in the sense that it's not happening, at least not yet. And despite the tariff and the fact that the US is the largest contributor of Bitcoin's hashrate, China is producing 99% of the world's ASIC. High tariffs are supposed to strengthen domestic production. It hasn't in this case.

If those companies moved to United States for the manufacture of the ASICs for US customers, that means it strengthens local production pertaining to United States. And also it might also lead to production of the miners from United States to neighboring nations. Or what are you implying with it has not strengthen local production?

[shield132]

Bitmain, Canaan and MicroBT are producing 99% of the world's ASIC but they are manufacturing the mining hardware from China. Due to tariff war pressure from Trump, they also want to be producing the mining hardware from United States.

https://cointelegraph.com/news/producer-behind-90

Possibly Trump tarrif war is working?

Where does BitFury stand? I have never heard of BitFury mining rigs, so can anyone confirm whether BitFury produces miners or not? If they produce, do they sell them or do they only keep them for themselves?
Btw it's interesting what the production cost will be in the USA. There have been lots of speculations that if Apple was producing iPhones in the USA, it would cost 4000 us dollars at least. I wonder how expensive Bitmain-produced ASIC miners will be. They can't be very expensive because if the ROI isn't good, then no one will buy miners from them.

[_act_]

Where does BitFury stand? I have never heard of BitFury mining rigs, so can anyone confirm whether BitFury produces miners or not? If they produce, do they sell them or do they only keep them for themselves?

I did not mention Bitfury, although the company is producing bitcoin mining hardware. What I just think is that people do not buy their ASICs like those three companies that made up of 99% of the production.

These are lists of ASIC producers and some details about them: https://en.bitcoin.it/wiki/List_of_Bitcoin_mining_ASICs

Btw it's interesting what the production cost will be in the USA. There have been lots of speculations that if Apple was producing iPhones in the USA, it would cost 4000 us dollars at least. I wonder how expensive Bitmain-produced ASIC miners will be. They can't be very expensive because if the ROI isn't good, then no one will buy miners from them.

This is not true. It was estimated that if iPhone is made in United, its cost will go up 43%.

[yhiaali3]

They think they're being clever about getting rid of Trump's tariffs on China, but Trump is waiting for them.

Trump certainly won't let them go without milking them. ASIC mining equipment manufacturers are very rich and generate huge profits, so Trump will find some way to make them pay the tariffs in another way.

But given these companies' thinking, I suspect they wanted to get rid of Chinese regulatory pressure on one hand, and their move to the US on the other hand would help them avoid tariffs on Chinese imports.

[justinlamode]

This is definitely a win for Donald Trump and the tariff policy because the essence of the tariff war was to bring back the factories and manufacturers to the US. This also agree with what Trump said about making the US the cryptocurrency capital of the world. If the biggest mining equipment manufacturing company of the world moves to the US, then it will surely lead to increase in mining operations in the US. I don't know is this will favor the company on the long run because we cannot tell what will happen after 2028 when Trump would have complete his term.

[Synchronice]

They think they're being clever about getting rid of Trump's tariffs on China, but Trump is waiting for them.

Trump certainly won't let them go without milking them. ASIC mining equipment manufacturers are very rich and generate huge profits, so Trump will find some way to make them pay the tariffs in another way.

You only see the one side of the game but completely ignore the other side. If Trump forces businesses to move production at the USA but then starts milking them, then every company will leave the US market. You don't mess up with business that way. Even current situation, what Trump did, proves that the USA is not a stable partner and the US dollar is the currency that should be changed.

What's the tariff on Chinese products? Are there general tariffs or do they differ on different products? If businesses really think to move production, it means that Trump is serious about current tariffs. I really wonder what's the ROI of mining equipment manufacturer companies. If it worth for them to move production from China to the USA, then this is serious.

[goldkingcoiner]

Bitmain, Canaan and MicroBT are producing 99% of the world's ASIC but they are manufacturing the mining hardware from China. Due to tariff war pressure from Trump, they also want to be producing the mining hardware from United States.

https://cointelegraph.com/news/producer-behind-90

Possibly Trump tarrif war is working?

And where do they get the components required for building ASIC? China?  

Even if they do manage to source all the parts from non-chinese sources and actually make them in the US, the cost of each one is going to be astronomical compared to the ones made in China. Who is going to buy them at such high prices? I think the 200% tariffed ones are still going to be cheaper than the ones made in the US... And of far better quality. It would take years for the price to go down and the quality to go up for the US versions.

[slapper]

Thanks to tariffs, changing rules, and the international fight over rare minerals, American miners are paying more for equipment, longer delivery times, and spending more time to comply with government regulations. The costs and complications just keep rising. Is that victory? That is what happens when Bitcoin mining becomes mainstream: the hardware giants does not vanish, they just switch their uniforms. Rather than everything going through China, you are now ordering the same top players, but with a U.S. flag on the shipping label and a new set of rules to follow

If anything, these tariffs are a sign that Bitcoin mining is maturing. And "growing up" means learning to live with political parents fighting over who gets custody. However, as usual, Bitcoin does not care. Regardless of what governments are doing, Bitcoin always manages to survive and spread out across the globe. It is flexible to new rules and challenges, and it does not stop. So, is the Trump tariff "working"? Depends. Do you measure “working” by who gets the jobs, who pays the bill, or who controls the switch? Or maybe, the real measure is: how many times can you split a network before it becomes ungovernable?

Anyone else getting the feeling we are watching a never-ending series where every “victory” is just the start of the next round? What is your bet? More centralization or more shadow decentralization ahead?

[Darker45]

High tariffs are supposed to strengthen domestic production. It hasn't in this case.

Yeah, but it is almost impossible for local producers to compete, the dominance of Bitmain, MicroBT and Canaan in Asic production is as high as 99%, so most of the American market still need their gears from China.

Nobody is sure if they will eventually go on with this plan, but if this tariff war continues, they have to, in order to serve their customers in the U.S. at a resonable price, because there is a significant demand for Asic in the U.S.

Let's see whether this proceeds or not. The tariff war has subsided a lot. If it continues this way, these companies might end up staying in China. It might be cost-beneficial to absorb the rising tariff than to relocate and face a much higher operation cost.

~snip~.

If those companies moved to United States for the manufacture of the ASICs for US customers, that means it strengthens local production pertaining to United States. And also it might also lead to production of the miners from United States to neighboring nations. Or what are you implying with it has not strengthen local production?

So far, it hasn't, not yet at least.

Also, for me there's a big difference between made in the USA and made by China in the USA. I mean, they're Chinese companies run by Chinese people. Parts are most probably coming from China. Decisions are made in China. A good part of the revenue is definitely going to China.

For me, it's still a big deal that this isn't strictly local products but FDI or Foreign Direct Investment products. You don't call a Toyota an American car even if your Toyota car is made in the USA.

[shield132]

Where does BitFury stand? I have never heard of BitFury mining rigs, so can anyone confirm whether BitFury produces miners or not? If they produce, do they sell them or do they only keep them for themselves?

I did not mention Bitfury, although the company is producing bitcoin mining hardware. What I just think is that people do not buy their ASICs like those three companies that made up of 99% of the production.

Yeah, BitFury produces and sells mining hardware, which I didn't know until this and that's strange for me because they have a tax free zone in my country, import everything without paying single tax and I have never heard anyone buying anything from them. If people buy a miner, it's mostly Bitmain or other brands.

I'll list it for those who are interested. From my research, BitFury produces and sells these -
Bitfury Tardis
Bitfury BlockBox AC
Bitfury Clarke

I am 100% sure that Bitfury started selling online of Bitfury tardis in 2019 and this was the first time they announced their prices online.

Btw they sell Clarke chips and I know they have been selling chips for a long time but how can someone use chips alone? If I buy chips without anything else, can I easily build a miner myself? I have no idea how these things work.

Btw it's interesting what the production cost will be in the USA. There have been lots of speculations that if Apple was producing iPhones in the USA, it would cost 4000 us dollars at least. I wonder how expensive Bitmain-produced ASIC miners will be. They can't be very expensive because if the ROI isn't good, then no one will buy miners from them.

This is not true. It was estimated that if iPhone is made in United, its cost will go up 43%.

Thanks, I didn't know that.

[DubemIfedigbo001]

Bitmain, Canaan and MicroBT are producing 99% of the world's ASIC but they are manufacturing the mining hardware from China. Due to tariff war pressure from Trump, they also want to be producing the mining hardware from United States.

https://cointelegraph.com/news/producer-behind-90

Possibly Trump tarrif war is working?

Yeah, I'll say it's working since ASCII companies in China are moving into US to setup manufacturing facilities and start producing there in order to escape tariff costs impressed by Trump on Chinese imported goods. It tends to be a response to both industrial and geopolitical requirements amid saving production costs.

In the same vein, US mining companies would avoid import duties and enjoy faster deliveries as the producing companies are now settled in the U.S.

[DeathAngel]

I would assume that electricity prices will be much higher in the US so their profits will be much lower. Sure it works for the US, more taxes etc but it’s not great for the miners. These tariffs are creating a big problem globally, also the US consumer will be the ones paying for stuff getting imported. Companies won’t eat the tariffs, they will pass price increases to their customers. Hopefully miners in the US won’t sell Bitcoin until the price is higher which could help us see a much higher price.