In a recent cover story titled “Bitmain’s Trump Card”, The Wire China reports that China’s bitcoin mining giant Bitmain is actively seeking to reposition itself in the U.S. market while distancing from Sophgo Technologies, a Chinese semiconductor company recently blacklisted by the U.S. government. The report cites commentary from Chiang Min-yen, Deputy Director of the Economic Security Research at DSET.
According to the report, Bitmain currently commands approximately 80 percent of the global market for bitcoin-specific mining hardware. The company is now deepening its business ties with the Trump family, while attempting to sever its controversial links to Sophgo, whose senior executives—closely affiliated with Bitmain—stepped down earlier this year.
The relationship between Bitmain and Sophgo has drawn international scrutiny due to allegations that both firms have played roles in circumventing U.S. export controls and facilitating access to advanced chips from TSMC by U.S.-sanctioned Chinese entities. In August 2024, DSET released a landmark report titled “The Remote Poaching Model: How China’s Bitmain Acquired Taiwan’s Edge AI Chip Technology and Its Implications for Economic Security”, which examined how Sophgo—reportedly acting as a Huawei proxy—was instrumental in Bitmain’s efforts to obtain advanced TSMC chips.
That report, later cited by Reuters, The Wire China, and AFP, included expert interviews with Chiang Min-yen and Chip War author Chris Miller, highlighting the broader national security implications. Chiang argued that Sophgo’s very creation was part of Bitmain’s broader strategy to indirectly access Taiwan’s advanced semiconductor capabilities. He also told AFP and Business Insider that the lack of transparency and the operation of Huawei’s “shadow network” pointed to the urgent need to strengthen Taiwan’s economic security architecture.
Against this backdrop, The Wire China now reveals that Bitmain plans to announce the opening of a new U.S. headquarters and manufacturing facility in either Florida or Texas by the end of September. At the same time, the company has secured a major commercial partnership with American Bitcoin, a crypto venture co-founded in March 2025 by Eric Trump. According to SEC filings, the Trump-linked firm plans to purchase up to $320 million worth of mining equipment from Bitmain. American Bitcoin is one of several crypto ventures launched by Trump family members since former President Donald Trump took office with promises to deregulate the cryptocurrency industry.
While China banned cryptocurrency trading and mining in 2021, American miners continue to rely on Chinese-made hardware. Although the U.S. government has not formally restricted Bitmain’s access to semiconductors, The Wire China cites Chiang’s warning that “doing business with Bitmain carries risks,” adding, “we need to understand whether Bitmain’s technology could contribute to the development of China’s AI ecosystem.”
The White House, Eric Trump, American Bitcoin, and Sophgo did not respond to The Wire China’s requests for comment. A Trump administration spokesperson previously stated that the president’s assets are held in a trust managed by his children.
The report also notes that in late 2024, some U.S. importers faced delays from U.S. Customs and Border Protection (CBP) in clearing Chinese-made bitcoin mining machines. Sources indicate that equipment seizures eased only after legal pressure from Bitmain and other Chinese manufacturers, and CBP began releasing the shipments in February 2025.
A June 2025 analyst note from J.P. Morgan cited in the article lists Bitmain as one of TSMC’s top Chinese clients, alongside Apple and AMD, helping to drive global demand for next-generation semiconductor technology.
Finally, The Wire China confirms that Sophgo was officially added to the U.S. Department of Commerce’s Entity List in January 2025, due to concerns over its links to Huawei and its role in acquiring sensitive U.S.-origin technology.
