{"slug": "chinese-firms-shift-from-nvidia-to-domestic-silicon-amid-us-tensions", "title": "Chinese firms shift from Nvidia to domestic silicon amid US tensions", "summary": "Chinese firms are shifting from Nvidia to domestic AI chips as Beijing certifies nine homegrown processors for state procurement, potentially collapsing Nvidia's China market share from 66% to 8% by 2026. Huawei's Ascend series leads the approved list, projected to capture 50% of China's AI chip market, while US export controls accelerate the pivot to local alternatives.", "body_md": "# Chinese firms shift from Nvidia to domestic silicon amid US tensions\n\nNvidia's China market share could collapse from 66% to 8% in just two years as Beijing pushes homegrown AI chips into state procurement\n\nNine domestically developed AI processors were certified for Chinese state procurement in May 2026, and the implications for the global semiconductor industry are hard to overstate. The list includes chips from Huawei, Biren, Alibaba, and several other local players, all of which are now eligible for government contracts that were, until recently, Nvidia’s bread and butter in the region.\n\nNvidia’s share of the Chinese AI chip market is projected to crater from roughly 66% in 2024 to around 8% by 2026.\n\n## Beijing’s silicon strategy takes shape\n\nHuawei’s Ascend series processors are the headliner on the approved list. The company is projected to capture approximately 50% of China’s AI chip market by 2026, up from about 40% in 2025.\n\nAlibaba’s T-Head chips also made the cut, giving the e-commerce and cloud giant a direct pipeline into government AI infrastructure spending.\n\nBeijing is reportedly directing firms to prioritize domestic silicon sources, with potential formal restrictions on Nvidia purchases for certain entities and projects.\n\n## What US export controls actually accomplished\n\nNvidia has faced a cascading series of problems in China: stringent export controls on its most advanced chips, customs delays on the modified versions it designed specifically to comply with regulations, and now policy directives actively steering buyers toward local alternatives.\n\nChinese chipmakers acknowledge a performance gap relative to Nvidia’s latest offerings. Huawei’s Ascend chips and other domestic alternatives don’t yet match the raw computational throughput of Nvidia’s H100 or B200 platforms.\n\n## The crypto and market angle\n\nHuawei is actively working to ramp Ascend-series output through 2026, and its ability to meet demand at scale will determine whether China’s chip independence push is a structural shift or a temporary political exercise. Early indications suggest the former.\n\n**Disclosure:** This article was edited by Editorial Team. For more information on how we create and review content, see our\n\n[Editorial Policy](https://cryptobriefing.com/editorial-policy/).", "url": "https://wpnews.pro/news/chinese-firms-shift-from-nvidia-to-domestic-silicon-amid-us-tensions", "canonical_source": "https://cryptobriefing.com/china-domestic-chips-nvidia-market-share/", "published_at": "2026-07-07 02:41:51+00:00", "updated_at": "2026-07-07 03:00:32.083169+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-chips", "ai-policy", "ai-infrastructure"], "entities": ["Nvidia", "Huawei", "Alibaba", "Biren", "Ascend", "T-Head", "H100", "B200"], "alternates": {"html": "https://wpnews.pro/news/chinese-firms-shift-from-nvidia-to-domestic-silicon-amid-us-tensions", "markdown": "https://wpnews.pro/news/chinese-firms-shift-from-nvidia-to-domestic-silicon-amid-us-tensions.md", "text": "https://wpnews.pro/news/chinese-firms-shift-from-nvidia-to-domestic-silicon-amid-us-tensions.txt", "jsonld": "https://wpnews.pro/news/chinese-firms-shift-from-nvidia-to-domestic-silicon-amid-us-tensions.jsonld"}}