Nvidia's AI Chip Market Share in China Drops from 95% to 55% in Three Years; Domestic Chips Take 41%

The landscape of China's AI chip market is undergoing significant changes. According to the latest IDC report, total shipments of AI accelerator cards in China in 2025 reached about 4 million units, with domestic manufacturers delivering 1.65 million units, accounting for 41% of the market.

Although Nvidia still ranks first with 2.2 million units, its market share has dropped from 95% three years ago to 55%, losing 40 percentage points. Among domestic players, Huawei leads with 812,000 units (20% of total market); T-Head (Alibaba's chip design arm), Baidu Kunlun, and Cambricon also hold certain shares.

The central government's new AI infrastructure investment and local policies prioritizing domestic chip procurement have opened up market space for domestic firms. Due to export controls, Nvidia has lost the high-end training chip market, and its current share relies mainly on inference chips and mid-to-low-end segments.