Nvidia’s share of China’s data-centre AI-chip market fell to 34% in the first half of 2026, while Huawei reached 28%, according to an IDC report reviewed by Reuters. Nvidia shipped 678,000 AI accelerators between January and June, a 44% decline from a year earlier. Huawei’s shipments rose to 572,000 from more than 300,000.
The figures come amid US restrictions on advanced chip exports and Beijing’s promotion of domestic alternatives. China also requires companies to obtain approval to import compliant Nvidia chips. Alibaba’s T-Head held 7% of the market, followed by Cambricon at 5%, Baidu’s Kunlunxin at 4% and Hygon at 3%.
The impact of export controls had already appeared in Nvidia’s financial disclosures. In its first-quarter fiscal 2026 commentary, covering the quarter ended April 27, 2025, Nvidia said Washington informed it on April 9 that exports of its H20 products to China would require a licence. The company subsequently recorded a US$4.5 billion charge associated with excess H20 inventory and purchase obligations.
Nvidia reported US$4.6 billion in H20 sales before the new requirements took effect during that quarter. It also said it could not ship an additional US$2.5 billion worth of H20 products. These disclosures concern an earlier reporting period and provide background to the restrictions affecting its China business.
Huawei, meanwhile, has outlined further expansion of its AI hardware portfolio. At Huawei Connect in Shanghai on September 17, 2026, the company said its Ascend 960DT would become available in the first quarter of 2027, three quarters ahead of its previous roadmap. It scheduled the Ascend 960PR for the third quarter of 2027.
“We’re evolving our Ascend chip series on a one-generation-a-year cycle,” said David Wang, Huawei’s deputy chairman and rotating chairman. Huawei also reported deployment of more than 1,000 Atlas 900 A3 SuperPoDs and large-scale commercial use of its Atlas 950 SuperPoD. Those deployment figures were supplied by the company.
IDC’s findings also show a change in China’s accelerator mix. Non-GPU accelerator shipments rose nearly 80% to 1.016 million units, exceeding GPU shipments of 991,000, which fell 26%. IDC forecasts 19% growth in total accelerator shipments during 2026, alongside a 9% decline in GPU shipments.
The report did not identify which Nvidia products contributed to its market share.
