Huawei continues to erode Nvidia's market share as China remains closed despite hopes of reopening - digitimes

According to DIGITIMES, despite signs suggesting that China may eventually reopen its market, Huawei continues to erode NVIDIA's market share. This trend reflects the Chinese semiconductor industry's ... Read original →

U.S. export controls on AI chips to China have backfired, catalyzing Huawei’s vertical integration of its Ascend ecosystem. Technically, domestic substitution now spans from silicon to compilers and model frameworks, creating a closed-loop stack that marginalizes NVIDIA’s CUDA in China. Compliance burdens are forcing multinationals into dual-supply chains, embedding geopolitical risk as a permanent cost overhead. In response, NVIDIA may resort to downgraded, compliant SKUs—but performance compromises will erode its premium positioning. Over the next 12–24 months, China’s AI chip market will bifurcate: one track built on homegrown ISAs and software stacks, the other reliant on gray-market or legacy inventory. This divergence won’t just fragment the global AI infrastructure—it risks crystallizing two incompatible technological civilizations.