Nvidia’s AI chip sales in China stall, as local chipmakers like Huawei take the lead - AP News

Against the backdrop of intensifying US-China tech rivalry, domestic Chinese semiconductor companies are increasingly gaining ground in the AI chip market. NVIDIA, a global leader in AI chips, has see... Read original →

U.S. export controls on AI chips have backfired, accelerating China’s domestic substitution cycle rather than stifling its tech ambitions. Huawei’s Ascend 950 now rivals NVIDIA’s H200 in compute density and software co-optimization, prompting firms like DeepSeek to rearchitect models for native support—creating a hardware-algorithm feedback loop. This ripple effect is pushing demand into EDA, advanced packaging, and sub-3nm process innovation, with Chiplet integration circumventing EUV bottlenecks. Compliance overhead has forced multinationals into dual-track supply chains; while NVIDIA thrives globally, its China revenue is structurally marginalized. Within 12–24 months, Huawei could capture over 60% of China’s AI training chip market, with AMD gaining short-term share due to regulatory flexibility. The long-tail outcome? A bifurcated global AI hardware ecosystem—de facto decoupled into U.S.- and China-centric stacks.