Huawei and Cambricon to dominate China's AI server chip market, squeezing Nvidia

By 2026, Chinese chip manufacturers, spearheaded by Huawei Technologies and Cambricon Technologies, are anticipated to seize almost 80% of the AI server market within China, prompting Nvidia's decline amid geopolitical strains and Beijing's emphasis on self-sufficiency. TrendForce reports that the market share of foreign suppliers, including Nvidia and Advanced Micro Devices, is expected to decrease from 34% in 2025 to 21% in 2026. Conversely, local chip producers are projected to boost their share from 46% in 2025 to 56% in 2026. Additionally, ASICs from Chinese internet firms are likely to represent 23% of the market, rising from 20% the previous year. Frank Kung, a research manager at TrendForce, noted during a conference in Shenzhen that this sector will expand as geopolitical challenges and self-reliance initiatives drive adoption.