Nvidia's AI chip sales in China stall, as local chipmakers like Huawei take the lead - Newsday

As Chinese semiconductor companies like Huawei gain ground in the AI chip market, NVIDIA's sales in China are stagnating. Once holding a 95% market share, NVIDIA has seen its dominance erode due to U.... Read original →

U.S. export controls on advanced AI chips have backfired by catalyzing China’s vertical integration of its domestic tech stack. Although Huawei’s Ascend 950 remains constrained by ASML’s EUV embargo and lacks true 3nm capability, innovations in chiplet packaging and software optimization have enabled firms like DeepSeek to migrate workloads off NVIDIA platforms. This erosion forces NVIDIA to rely on downgraded, compliant SKUs in China—compressing margins—while AMD’s MI300 faces identical barriers. Over the next 12–24 months, China will likely cement a self-contained AI infrastructure based on SMIC’s N+2 quasi-3nm process and homegrown cluster standards. The global semiconductor landscape is bifurcating into two parallel ecosystems: one led by TSMC and NVIDIA, the other driven by supply chains outside Taiwan, China. Geopolitics now dictates technical architecture more than pure performance.