Nvidia's China AI Chip Share Plummets Amid US Curbs

Nvidia's share of China's crucial data-center AI chip market has fallen to 34% as of the first half of 2026. This significant decrease stems directly from US export controls that have limited the availability of Nvidia's advanced AI accelerators within the world's second-largest economy. The restrictions have created an opening for domestic rivals.

Huawei has emerged as a major beneficiary, increasing its AI accelerator shipments to 572,000 units and capturing 28% of the market. Other Chinese chipmakers like T-Head, Cambricon, Kunlunxin, and Hygon also saw increased shipments, collectively holding substantial portions of the market outside of Nvidia and Huawei.

Total AI accelerator shipments in China reached 2.008 million units in the first half of 2026. While shipments of GPUs, the primary chips for AI model training, decreased by 26%, other AI accelerators designed for specific tasks saw an almost 80% surge, indicating a broader adoption of AI hardware.

IDC forecasts that total accelerator shipments in China will grow by 19% this year, despite a projected 9% decline in GPU shipments. The competitive landscape is increasingly focusing on system-level capabilities rather than just individual chip performance.