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chip share falls as Huawei closes gap, report finds

Nvidia's share of China's market for data-centre AI chips fell to 34% in the first half of 2026, as US export controls restricted supplies of its products and domestic rivals led by Huawei gained ground, according to an IDC report seen by Reuters. Synopsis Nvidia's share of China's market for data-centre AI chips fell to 34% in the first half of 2026, as US export controls restricted supplies of its products and domestic rivals led by Huawei gained ground, according to an IDC report seen by Re

By the Truvace desk2 min read1 sourceJournalismTRV-2026-1334· cite & verify
chip share falls as Huawei closes gap, report finds

In brief

An IDC report seen by Reuters shows that Nvidia held 34% of China's data-centre AI chip market in the first half of 2026, a fall from its earlier position. The report links the decline to restricted supplies of its products under US export controls.

Domestic suppliers, led by Huawei, are taking up ground in the segment. The shift matters because it shows how trade restrictions can reshape who supplies the computing hardware behind AI in a major market. The excerpt does not give earlier share figures, rival percentages or forecasts, so the pace and durability of the shift remain unclear.

Main points

  1. Nvidia's share of China's data-centre AI chip market was 34% in the first half of 2026.
  2. The report attributes the decline partly to US export controls restricting supplies of Nvidia products.
  3. Domestic rivals led by Huawei gained ground in the same market.
  4. The figures come from an IDC report seen by Reuters, as relayed by The Economic Times.

The problem

Nvidia's share of China's data-centre AI chip market dropped to 34% in the first half of 2026, as US export controls limited its supply and domestic rivals led by Huawei gained ground.

The rundown

The reported figure covers the first half of 2026 and concerns data-centre AI chips specifically, not the broader semiconductor market or consumer products.

Two causes are named together: US export controls that restricted supplies of Nvidia's products, and the rise of domestic competitors led by Huawei. The text does not say how much each factor contributed.

The source is an IDC report that Reuters saw, and the supplied text is a short synopsis, so details such as the prior-period share, rival percentages and total market size are not available here.

Sources

  1. JournalismThe Economic Times2026-10-13

The debate