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Huawei Poised to Dominate China’s AI Chips in 2026 as Nvidia Shipments Stall

Export curbs steered Chinese buyers to domestic chips.

Overview

  • Analysts on Friday said Huawei could capture about 60% of China’s AI chip market in 2026 with roughly $12 billion in sales based on current orders.
  • Nvidia’s H200 and H20 shipments remain stuck at customs because U.S. licenses require use inside China while Beijing tells buyers to deploy them only overseas.
  • Huawei’s Ascend 950PR entered mass production in March and targets inference tasks, with FP4 support and 128 GB of locally made high‑bandwidth memory.
  • DeepSeek said it runs inference for its v4 model on Huawei hardware even though it trained the system on Nvidia chips.
  • SMIC makes most of Huawei’s AI chips and plans two new dedicated fabs this year, as Morgan Stanley projects China’s AI chip market to reach about $67 billion by 2030.