Chinese chipmakers capture 41% of local market as Nvidia's dominance erodes under export controls
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Chinese chipmakers claim nearly half of local market as Nvidia's lead shrinks
BEIJING, April 1 (Rtrs) - Chinese GPU and AI chip makers captured nearly 41% of China's AI accelerator server market last year, eroding Nvidia's once-dominant position in one of its most important overseas markets, according to data from an IDC report reviewed by Reuters. The gains come as Beijing grows increasingly cautious about dependence on foreign chips, pushing government agencies and companies to adopt domestic alternatives after successive waves of U.S. export controls cut China off from Nvidia's most advanced products. Total shipments of AI accelerator cards by Nvidia, AMD, and Chinese chipmakers reached approximately 4 million units in China in 2025, the data showed. Nvidia remained the market leader, shipping around 2.2 million cards and holding a 55% share. But that figure marks a significant retreat for the U.S. chipmaker, which held a dominant market share in China's AI chip market. AMD carved out a modest presence, shipping roughly 160,000 cards for a 4% share, the IDC data showed. Chinese vendors collectively shipped 1.65 million cards, accounting for 41% of the total market -- a milestone that underscores how aggressively domestic players have moved to fill the void left by tightening U.S. export controls. Huawei Technologies emerged as the runaway leader among Chinese vendors, shipping around 812,000 AI chips, roughly half of all domestically branded shipments. Alibaba's chip design unit T-Head claimed second place, shipping approximately 265,000 cards. Baidu's Kunlunxin and Cambricon each shipped around 116,000 cards, ranking them jointly third among Chinese vendors. Hygon, GPU startups MetaX and Iluvatar CoreX accounted for 5%, 4% and 3% of total Chinese vendor shipments, respectively. In 2025, the central government launched a new wave of AI infrastructure spending, with local governments accelerating intelligent computing centers across provinces, many of which carried implicit directives to "buy Chinese." Reporting by Che Pan and Laurie Chen, Editing by Louise Heavens Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence Laurie Chen Thomson Reuters Laurie Chen is a China Correspondent at Reuters' Beijing bureau, covering politics and general news. Before joining Reuters, she reported on China for six years at Agence France-Presse and the South China Morning Post in Hong Kong. She speaks fluent Mandarin.
[2]
Chinese chipmakers claim nearly half of local market as Nvidia's lead shrinks
The gains come as Beijing grows increasingly cautious about dependence on foreign chips, pushing government agencies and companies to adopt domestic alternatives after successive waves of U.S. export controls cut China off from Nvidia's most advanced products. Chinese GPU and AI chip makers captured nearly 41% of China's AI accelerator server market last year, eroding Nvidia's once-dominant position in one of its most important overseas markets, according to data from an IDC report reviewed by Reuters. The gains come as Beijing grows increasingly cautious about dependence on foreign chips, pushing government agencies and companies to adopt domestic alternatives after successive waves of U.S. export controls cut China off from Nvidia's most advanced products. Total shipments of AI accelerator cards by Nvidia, AMD, and Chinese chipmakers reached approximately 4 million units in China in 2025, the data showed. Nvidia remained the market leader, shipping around 2.2 million cards and holding a 55% share. But that figure marks a significant retreat for the U.S. chipmaker, which held a dominant market share in China's AI chip market. AMD carved out a modest presence, shipping roughly 160,000 cards for a 4% share, the IDC data showed. Chinese vendors collectively shipped 1.65 million cards, accounting for 41% of the total market - a milestone that underscores how aggressively domestic players have moved to fill the void left by tightening U.S. export controls. Huawei Technologies emerged as the runaway leader among Chinese vendors, shipping around 812,000 AI chips, roughly half of all domestically branded shipments. Alibaba's chip design unit T-Head claimed second place, shipping approximately 265,000 cards. Baidu's Kunlunxin and Cambricon each shipped around 116,000 cards, ranking them jointly third among Chinese vendors. Hygon, GPU startups MetaX and Iluvatar CoreX accounted for 5%, 4% and 3% of total Chinese vendor shipments, respectively. In 2025, the central government launched a new wave of AI infrastructure spending, with local governments accelerating intelligent computing centers across provinces, many of which carried implicit directives to "buy Chinese."
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Chinese chipmakers seized nearly 41% of China's AI accelerator server market in 2025, marking a dramatic shift in one of Nvidia's most critical overseas markets. The surge comes as Beijing pushes government agencies and companies toward domestic alternatives following successive U.S. export controls that cut off access to Nvidia's most advanced products.
Chinese Chipmakers Gain Ground in AI Accelerator Market
Chinese chipmakers captured nearly 41% of China's AI accelerator server market in 2025, according to IDC data reviewed by Reuters, marking a significant milestone in eroding Nvidia's leading position in one of its most valuable overseas markets
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. The shift represents a dramatic transformation in the domestic market, driven by Beijing's push for domestic alternatives and reduced reliance on foreign chips following successive waves of U.S. export controls that have cut China off from Nvidia's most advanced AI chips2
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Source: ET
Total shipments of AI accelerator cards by Nvidia, AMD, and Chinese chipmakers reached approximately 4 million units in China in 2025. Chinese vendors collectively shipped 1.65 million cards, a figure that underscores how aggressively domestic players have moved to fill the void left by tightening restrictions on advanced GPU technology.
Nvidia's Lead Shrinks Despite Maintaining Top Position
While Nvidia remained the market leader, shipping around 2.2 million cards for a 55% market share, the figure marks a significant retreat for the U.S. chipmaker, which previously held a dominant position in the AI accelerator market. AMD carved out a modest presence with roughly 160,000 cards shipped, accounting for a 4% share. The data reveals how U.S. export controls have fundamentally reshaped competitive dynamics, forcing Chinese entities to accelerate their development of homegrown AI chips and reducing their dependence on American technology.
Huawei Leads Domestic Vendor Shipments
Huawei Technologies emerged as the runaway leader among Chinese vendors, shipping around 812,000 AI chips—roughly half of all domestically branded vendor shipments
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. Alibaba's chip design unit T-Head claimed second place with approximately 265,000 cards shipped, while Baidu's Kunlunxin and Cambricon each shipped around 116,000 cards, ranking them jointly third among Chinese vendors. GPU startups including Hygon, MetaX, and Iluvatar CoreX accounted for 5%, 4%, and 3% of total Chinese vendor shipments, respectively, indicating a broadening ecosystem of domestic chip developers.
Source: Reuters
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Government Directives to Buy Chinese Accelerate Market Shift
In 2025, the central government launched a new wave of AI infrastructure spending, with local governments accelerating intelligent computing centers across provinces
2
. Many of these projects carried implicit government directives to buy Chinese, pushing government agencies and companies to adopt domestic alternatives. This policy environment has created a structural advantage for Chinese chipmakers, potentially signaling a long-term shift in the competitive landscape that could further diminish Nvidia's presence in what has historically been one of its most important overseas markets. The trend suggests that even if U.S. export controls were relaxed, Beijing's growing caution about dependence on foreign chips may sustain demand for domestically produced AI accelerator cards.References
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