The mining hardware manufacturer has launched pilot production in the United States while withdrawing from the artificial intelligence chip market.
Canaan, a producer of ASICs for bitcoin mining, has successfully completed a pilot production phase on U.S. soil. This move mirrors operations already established in Malaysia, marking an expansion for the company into the North American market.
In an official statement released on June 23, a Canaan spokesperson confirmed that the company “successfully completed a pilot production run in the United States,” replicating the methodologies already tested at its Malaysian facilities. At the same time, the company announced the complete shutdown of its artificial intelligence semiconductor business, calling the decision “a strategic realignment aimed at concentrating resources more effectively.”
The AI unit, which generated $900,000 in revenue in 2024, represented a small fraction of the company’s total income but accounted for 15% of its operating expenses. Canaan stated that the mismatch between cost and output, along with poor alignment with long-term objectives, drove the decision to phase it out.
Nangeng Zhang, Chairman and CEO of Canaan, explained the philosophy behind this move:
“I believe that doubling down on our core strengths in crypto infrastructure and bitcoin mining is the most strategic path forward for Canaan.”
Although company representatives acknowledged that production costs in the United States are higher than in other locations, Canaan views “this initiative not only as a hedge against tariffs but also as a potential long-term investment in resilience.”
According to the company, producing ASICs closer to the North American market offers several competitive advantages, including faster delivery cycles, a quicker response to local demand, and improved ability to navigate future geopolitical or regulatory changes.
A company representative emphasized that ASIC production in the U.S. is part of a long-term effort:
“We are actively working to optimize our U.S. cost structure with the goal of containing production expenses.”
Canaan’s statements follow recent reports indicating that Bitmain, Canaan, and MicroBT — which collectively manufacture the majority of the world’s ASICs — are bringing production to the United States.
