Nvidia, AMD Lose China AI Chip Share to Domestic Suppliers

Nvidia and AMD's combined share of China's AI server chip market is expected to decline sharply, falling from 34% in 2025 to just 21% by 2026, according to a forecast from Taiwan-based market research firm TrendForce.

This shift is attributed to Beijing's push for technological self-reliance and geopolitical tensions, which have eroded the position of foreign suppliers. As a result, domestic Chinese chipmakers are expected to increase their market share to 56% in 2026, up from 46% in 2025.

Huawei and Cambricon are leading this trend, with highly specialized application-specific integrated circuits (ASICs) designed by Chinese internet companies projected to account for 23% of the market. This means that close to 80% of China's AI server hardware will be made up of domestic-designed silicon in 2026.

TrendForce research manager Frank Kung noted that this segment will continue to scale up due to geopolitical uncertainty and Beijing's push for technological self-reliance, with the largest internet companies driving AI chip growth. However, Nvidia still expects to dominate the global AI server GPU market next year, holding around 64% of the worldwide market.