Huawei Closes in on Nvidia in China's AI Chip Market
Nvidia's share in China's AI accelerator market dropped to 34% in the first half of 2026, while Huawei raised its share to 28%, according to IDC data.
Nvidia's market share in mainland China's AI accelerator market dropped to 34% during the first half of 2026, after shipping 678,000 accelerators—a 44% year-on-year decline, according to IDC data reviewed by Reuters.
In contrast, Huawei shipped 572,000 units during the same period, up from more than 300,000 a year earlier, bringing its share to 28%, according to the same source.
The data showed that nine out of eleven Chinese chip companies tracked by IDC increased their shipments on a year-on-year basis, indicating local expansion in the market despite export restrictions.
This shift reveals a change in the balance of power within Asia's largest market for accelerators, as Chinese companies gradually gain ground at the expense of the US supplier.
What Do These Terms Mean?
AI Accelerator: An electronic chip designed to accelerate artificial intelligence computations, such as training and running models.
Semiconductors: Electronic chips that power digital devices, made from semiconductor materials such as silicon.
Market Share: The percentage of total sales of a commodity or service in a particular market held by a company.
IDC: A research firm specializing in technology and telecommunications markets that issues periodic data on shipments and market shares.
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