IDC: Nvidia's China AI Chip Market Share Drops to 34% as Huawei Rises to 28%
According to an IDC report for the first half of 2026, Nvidia's share of China's data center AI chip market fell to 34%, while Huawei's share rose significantly to 28% due to ongoing US export controls. This shift highlights a major structural change in the global AI hardware landscape, demonstrating how trade restrictions are accelerating the domestic semiconductor push in China and empowering local competitors like Huawei. During the first half of 2026, Nvidia shipped 678,000 AI accelerators in China (down 44% year-over-year), whereas Huawei shipped 572,000 units, capturing 28% of the market. Other local firms such as T-Head, Cambricon, Kunlunxin, and Hygon also secured notable single-digit market shares.
## BACKGROUND
US export controls implemented in recent years have restricted the sale of advanced Nvidia graphics processing units (GPUs) and AI accelerators to the Chinese market. In response, Chinese technology giants and semiconductor firms have rapidly scaled up the production and deployment of domestic alternatives, such as Huawei's Ascend processors, to sustain large-scale AI development.