Why Chip Restrictions on China Could Change the Future of Crypto Mining Hardware
Why Chip Restrictions on China Could Change the Future of Crypto Mining Hardware
Over the past few years, many people have heard about the “chip war” between the United States and China. Most of the attention has been on smartphones, AI, and big tech companies like Huawei.
What many don’t realize is that this situation is now starting to affect crypto mining hardware as well.
In this article, we’ll explain what’s really happening in clear, simple terms and why it matters for miners, hosting providers, and anyone investing in mining equipment.
It Didn’t Start With Crypto Mining
The story begins with Huawei.
The United States placed Huawei on a so-called Entity List, arguing that advanced chips could be used for military or surveillance purposes. As a result, companies using American technology were no longer allowed to supply Huawei with high-end chips.
This didn’t only affect US companies.
Foundries like TSMC in Taiwan also had to comply, because they rely on US software and manufacturing equipment.
The result:
Huawei lost access to modern chip production almost overnight.
Why This Matters for Mining Hardware
Modern crypto miners use highly specialized ASIC chips.
These chips are designed for one purpose only: maximum performance at the lowest possible energy consumption.
From a technical perspective, these mining chips are:
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extremely powerful
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highly efficient
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manufactured using the same advanced processes as AI chips
This puts them in a category known as “dual-use technology” hardware that can be used both commercially and strategically.
That’s where the problem begins.
Export Controls Are Expanding
After Huawei, the US extended export restrictions to:
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AI accelerators
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supercomputing components
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advanced semiconductor manufacturing
Mining ASICs are increasingly being viewed in the same category.
China is one of the largest buyers of mining hardware in the world. If access to cutting-edge chips is restricted, manufacturers may face:
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limited production capacity
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delays for new miner generations
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higher production costs
In simple terms: less supply, higher prices, slower innovation.
What This Means for Miners and Investors
If modern chips become harder to produce or export, several things happen:
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Existing hardware becomes more valuable
Older but efficient miners stay profitable longer. -
Early access matters more than ever
Those who secure hardware early gain a competitive advantage. -
Hosting locations outside China gain importance
Stable infrastructure and legal clarity become key factors. -
Mining becomes less crowded
Fewer new machines entering the market can stabilize profitability.
For experienced operators, this is not necessarily bad news — it shifts the focus from speculation to strategy.
Why This Is Relevant for Valmento Customers
At Valmento, we closely monitor hardware supply chains and global market developments.
Understanding these trends helps customers make better long-term decisions, not just short-term purchases.
Mining has always rewarded those who think ahead and the current chip situation is a clear example of why market knowledge matters.
Final Thoughts
The chip restrictions targeting China were never just about smartphones.
They are reshaping entire industries including crypto mining.
Whether or not mining chips will be fully restricted in the future remains to be seen. But one thing is clear:
hardware availability, efficiency, and timing will play a bigger role than ever before.
Staying informed is no longer optional it’s part of the strategy.