Chinese Suppliers to Dominate Domestic AI Server Market, Squeezing Nvidia
En resumen
Chinese chip suppliers, including Huawei and Cambricon, along with domestic tech giants, are projected to capture nearly 80% of China's AI server market this year, further eroding the position of global rivals like Nvidia due to geopolitical tensions and Beijing's push for self-reliance.
Resumen generado por IA
Por qué importa
Geopolitical tensions continue to erode the position of foreign suppliers in China's AI server market, while Beijing's push for technological self-reliance accelerates the adoption of domestic chips.
Chinese chip suppliers led by Huawei Technologies and Cambricon Technologies, together with tech giants developing their own silicon, are set to capture nearly 80 per cent of the domestic AI server market this year, further squeezing global rivals such as Nvidia, according to TrendForce.
Geopolitical tensions continue to erode the position of Nvidia, Advanced Micro Devices and other foreign suppliers, whose combined share of China’s AI server market is forecast to fall to 21 per cent in 2026 from 34 per cent last year, according to the Taipei-based research firm.
Domestic chip suppliers, led by Huawei and Cambricon, are expected to increase their market share to 56 per cent in 2026, up from 46 per cent in 2025.
Meanwhile, highly specialised application-specific integrated circuits (ASICs) designed by Chinese internet companies are projected to account for 23 per cent of the market, compared with 20 per cent a year earlier.
“This segment will continue to scale up” as geopolitical uncertainty and Beijing’s push for technological self-reliance accelerate adoption, said Frank Kung, research manager at TrendForce, at the company’s conference in Shenzhen on Tuesday.
On the demand side, China’s largest internet companies are driving AI chip growth, rapidly expanding their deployment of domestic processors from suppliers such as Huawei and Cambricon.
Qué observar
Perspectiva de IA — posibilidades, no hechos
Chinese domestic chip suppliers' market share in China's AI server market will reach 56% by 2026.
Muy probable · Medio plazo
Foreign suppliers' market share in China's AI server market will fall to 21% by 2026.
Muy probable · Medio plazo
Preguntas abiertas
- How will global chip suppliers like Nvidia adapt to the shrinking market share in China?
- What is the specific financial impact on Nvidia and AMD from this market shift?
- Will the growth of Chinese ASICs further accelerate beyond current projections?
