Nvidia's China AI-chip share falls as Huawei closes gap, report finds
BEIJING: Nvidia’s share of China’s market for data-centre AI chips fell to 34% in the first half of 2026 , as US export controls restricted supplies of its products and domestic rivals led by Huawei gained ground, according to an IDC report seen by Reuters. Nvidia shipped 678,000 AI accelerators in China from January through June, down 44% from a year earlier, IDC data showed. AI accelerators are…
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.
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