Huawei closes gap on Nvidia in Chinese AI chip market

Chinese firms are rapidly increasing their share of the artificial‑intelligence chip market. Huawei, backed by substantial domestic investment, is projected to capture roughly half of China’s AI chip sales this year, while Nvidia’s share could fall to single‑digit levels, according to market analysts. The shift follows U.S. export controls that have limited Nvidia’s ability to sell its most advanced AI processors in China. Huawei’s Ascend 950 series is said to be comparable in performance to Nvidia’s H200 chip, and the company has deployed large AI‑computing clusters built from thousands of domestically produced chips.

The broader Chinese AI sector is benefitting from government support, including approval for Czech participation in the EU‑backed AI Gigafactory competition and a strategic partnership between Schneider Electric and Foxconn to build next‑generation AI data centers. Meanwhile, the world’s most powerful supercomputer is now located in China, with the United States holding the second spot.