Key facts
- Nvidia's share of China's AI chip market fell to 34% in the first half of 2026.
- Nvidia shipped 678,000 AI accelerators in China, down 44% year-on-year.
- Huawei shipped 572,000 AI accelerators, capturing 28% of the market.
- Total AI accelerator shipments in China reached 2.008 million units in the first half of 2026.
- US export controls have restricted Nvidia's sales in China.
- Huawei, T-Head, Kunlunxin, and Cambricon accounted for 95% of the non-GPU AI accelerator segment.
Nvidia's dominance in China's lucrative data-center AI chip market has diminished, with its share falling to 34% in the first half of 2026, according to a report by IDC seen by Reuters. This decline is attributed to U.S. export controls that have restricted Nvidia's ability to supply its most advanced chips to China, while domestic competitors, led by Huawei, have made significant gains.
Nvidia shipped 678,000 AI accelerators in China during the first six months of 2026, a 44% decrease compared to the same period a year prior. AI accelerators are specialized processors crucial for training and operating artificial intelligence models. The U.S. government's restrictions aim to limit China's access to cutting-edge AI technology, prompting Beijing to promote domestic alternatives and implement approval processes for compliant Nvidia chip imports.
Nvidia CEO Jensen Huang has voiced strong opposition to these export curbs, arguing they cede a substantial portion of China's $50 billion AI chip market to rivals like Huawei. IDC data indicates Huawei shipped 572,000 AI accelerators, capturing 28% of the overall market, a notable increase from over 300,000 units a year earlier. Other Chinese chipmakers also saw increased shipments, with Alibaba's T-Head holding 7%, Cambricon 5%, Baidu's Kunlunxin 4%, and Hygon 3%.
Overall AI accelerator shipments in China reached 2.008 million units in the first half of 2026. Shipments of GPUs, the primary chips for AI model training, fell 26% to 991,000 units due to limited supplies eligible for sale in mainland China. However, shipments of other AI accelerators, designed for specific tasks like running trained models, surged by nearly 80% to 1.016 million units, surpassing GPUs in volume. Huawei, T-Head, Kunlunxin, and Cambricon collectively dominated this non-GPU segment, accounting for 95% of its market share, with adoption by government agencies, internet companies, and telecom providers.