Nvidia Chip Share in China Falls 44%

Overview

Nvidia's share of AI chips in China declined sharply in the first half of 2026, driven by U.S. export controls and rising competition from domestic firms.

Shipment and Market Share

Nvidia shipped 678,000 AI data‑center chips to China between January and June 2026, representing a 44 % year‑on‑year decrease. Consequently, its market share of AI chips in China fell to 34 %.

Competitive Landscape

Huawei emerged as the leading Chinese AI‑chip developer with a 28 % share of the market. Alibaba’s chip‑design unit T‑Head held 7 %, Cambricon 5 %, Baidu’s Kunlunxin 4 % and Hygon 3 % of the market.

Regulatory Environment

The decline is attributed primarily to continued U.S. restrictions that prevent Nvidia from selling its most advanced AI chips to China. Beijing also limited the volume of the few chips that received U.S. approval, approving only small local sales.

Demand Drivers

Demand for AI chips has surged as both U.S. and Chinese companies intensify efforts to train and deploy advanced AI models.