Key Takeaways
- Nvidia’s share of China’s data-center AI chip market fell to 34% in the first half of 2026.
- Huawei emerged as the strongest local competitor, with a 28% market share.
- US export restrictions have limited Nvidia’s ability to sell advanced chips in China.
Nvidia, the leading supplier of data-center AI chips in China, has seen its market share decline significantly, according to IDC data. In the first half of 2026, Nvidia’s share of China’s data-center AI chip market fell to 34%, down from a higher percentage in the previous year.
The company shipped around 678,000 AI accelerators between January and June, a 44% year-over-year decrease. Huawei, a strong local competitor, saw its shipments increase from over 300,000 to around 572,000, giving it a 28% market share.
Nine out of the eleven Chinese chipmakers tracked by IDC recorded year-over-year shipment growth. Alibaba’s T-Head accounted for 7% of the market, followed by Cambricon at 5%, Baidu’s Kunlunxin at 4%, and Hygon at 3%.
US export restrictions have played a significant role in reshaping the market. These restrictions limit Nvidia’s ability to sell some of its most advanced chips in China, while Chinese companies face approval requirements when importing certain Nvidia processors.
In response to these challenges, Beijing has been encouraging local companies to adopt domestically produced chips as part of its broader push for technological self-reliance. This has created more room for companies such as Huawei, Cambricon, and other Chinese chipmakers to expand.
Nvidia CEO Jensen Huang has criticized US export restrictions, arguing that they are giving competitors, particularly Huawei, a larger share of China’s AI chip market, which he estimates to be worth roughly $50 billion.
Huawei’s market share growth is part of a broader trend where Chinese companies are increasingly relying on domestic chip solutions. This shift is expected to continue as the Chinese government continues to support local innovation and manufacturing.
While Nvidia has not commented on the latest IDC figures, the company’s market share decline highlights the growing competition in the AI chip market in China.
