In the ongoing competition between the U.S. and China over advanced artificial intelligence technology, Nvidia’s dominance in China’s AI chip market is waning. Once holding about 95% market share in China, Nvidia’s grip has loosened significantly due to U.S. export controls limiting advanced chip sales. Chinese companies, notably Huawei, have rapidly developed their own AI chips, with Huawei now holding roughly 50% market share, compared to Nvidia’s expected decline to around 8% in 2025. Despite these challenges, Nvidia’s AI chips remain critical for certain high-performance applications in China, given the complex global semiconductor supply chain. Meanwhile, Huawei is not only strengthening its position domestically but also has ambitions to expand its chip technology globally. The shift reflects a broader trend of China pushing for technological self-sufficiency in semiconductor manufacturing amidst geopolitical tensions.
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