IDC: NVIDIA's share of AI chip market in China's data centers has dropped to 34%
Phoenix Technology cited a report from IDC seen by Reuters, stating that in the first half of 2026, NVIDIA's market share in China's data center AI chip market dropped to 34%. IDC data shows that from January to June this year, NVIDIA's AI accelerator shipments in the Chinese market were 678,000 units, a year-on-year decrease of 44%. The report attributed the change in market share to U.S. export control restrictions limiting product supply, as well as domestic competitors in China expanding their market share.Among the 11 Chinese chip manufacturers tracked by IDC, 9 experienced year-on-year growth in shipments. Huawei's AI accelerator shipments reached 572,000 units in the first half of the year, up from over 300,000 units in the same period last year, accounting for 28% of the overall market. Alibaba's chip design division, T-head, holds a market share of 7%, Cambricon has 5%, Baidu's Kunlun has 4%, and Haiguang Information has 3%.NVIDIA's CEO Jensen Huang has repeatedly criticized the U.S. government's export restrictions, stating that the policy forces NVIDIA to cede the $50 billion AI chip market in China to Huawei. IDC did not specify which products make up the 34% share, nor did it clarify whether it includes chips such as B200 and B300. As of the time of publication, NVIDIA had not responded to requests for comment.
