Chinese semiconductor firms are rapidly expanding their presence in the domestic AI chip market, capturing about 41% of China’s AI accelerator server segment in 2025, according to industry data.
While Nvidia remains the market leader with roughly 55% share and 2.2 million units shipped, its dominance has weakened significantly compared to previous years. The shift reflects the impact of U.S. export controls and China’s push for technological self-reliance.
Domestic players collectively shipped around 1.65 million AI accelerator cards, marking a substantial rise in local production. Huawei Technologies led Chinese vendors with approximately 812,000 units, followed by Alibaba’s chip unit and other firms such as Baidu and Cambricon.
Meanwhile, AMD maintained a smaller foothold with about 4% market share.
The growth of Chinese chipmakers has been driven by government-backed initiatives encouraging the adoption of domestic technology, particularly in AI infrastructure projects. Local authorities have accelerated the construction of computing centers, often prioritizing locally produced hardware.
The trend highlights a broader realignment in the global semiconductor landscape, where geopolitical tensions and export restrictions are reshaping supply chains and accelerating regional innovation ecosystems.
