IDC: Nvidia's AI chip shipments in China fell 44% YoY to 678K in H1 2026, as its market share slid to 34% amid US export curbs and rising domestic competition (Reuters)

Nvidia's dominance in China's data-center AI chip market has eroded to 34% in the first half of 2026, according to an IDC report obtained by Reuters. The US chipmaker shipped 678,000 AI accelerators to China, a 44% year-over-year decline, as export restrictions imposed by Washington limited the availability of its most powerful chips.

Huawei, on the other hand, witnessed a surge in shipments, reaching 572,000 AI accelerators, up from over 300,000 a year ago, giving the Chinese firm a 28% market share. Alibaba's chip-design unit T-Head held 7%, while Cambricon, Baidu's Kunlunxin, and Hygon accounted for 5%, 4%, and 3% respectively. Notably, nine of the 11 Chinese chipmakers tracked by IDC increased shipments compared to the previous year.

Total AI-accelerator shipments in China's first half stood at 2.008 million units, with graphics processing units (GPUs) falling 26% to 991,000 units as exports to China remained restricted. Other AI accelerators, which include chips designed for specific tasks, surged nearly 80% to 1.016 million units, overtaking GPUs by volume.

This trend reflects a shift in competition from individual chip performance to system-level capabilities, as chips become integral components of larger computing clusters. IDC projects a 19% growth in total accelerator shipments in China this year, despite a 9% decline in GPU shipments.