Nvidia’s share of AI‑accelerator shipments to China fell to 34% in the first half of the year, Reuters reports, citing IDC data. The US firm shipped some 678,000 specialized chips to Chinese data centres over the period, marking a 44% decline from a year earlier, as export restrictions and a pivot by Chinese buyers toward domestic alternatives cut demand.
Washington’s ongoing export curbs, which bar the most powerful GPUs from China, are the primary cause of the drop. Nvidia’s attempt to supply downgraded models under tightened rules has had limited success: Beijing has largely shunned curtailed chips, allowing only token sales. As a result, Chinese corporations have redirected procurement budgets toward the domestic semiconductor market.
Huawei is the chief beneficiary, growing its share of China’s AI‑chip market to about 28%. Other domestic suppliers are also expanding: Alibaba’s T‑Head unit holds roughly 7%, startup Cambricon about 5%, Baidu’s Kunlunxin business around 4%, and Hygon near 3%. As the global neural network race intensifies, China’s push for chip autonomy is gathering pace, gradually stripping Nvidia of a key regional market.