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      NVIDIA's Share of China's AI Chip Market Declines to 34% Amid Export Restrictions

      In the first half of 2026, NVIDIA's market share in China's data center AI chip sector fell to 34%, according to a report from International Data Corporation (IDC) cited by Phoenix Technology. The report indicates that NVIDIA shipped 678,000 AI accelerators in China during this period, marking a significant year-on-year decrease of 44%.

      The decline in NVIDIA's market share is attributed to U.S. export control restrictions that have limited product supply, as well as the rise of domestic competitors in China. Among the 11 Chinese chip manufacturers tracked by IDC, nine reported growth in shipments. Notably, Huawei's AI accelerator shipments surged to 572,000 units, up from over 300,000 units in the same timeframe last year, giving it a 28% share of the market.

      Other Chinese companies also gained ground, with Alibaba's T-head holding a 7% market share, Cambricon at 5%, Baidu's Kunlun at 4%, and Haiguang Information at 3%. NVIDIA's CEO, Jensen Huang, has publicly criticized the U.S. government's export restrictions, arguing that these policies are forcing the company to relinquish its position in the $50 billion AI chip market in China to competitors like Huawei. As of now, NVIDIA has not provided a comment on the report.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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