Nvidia Loses Ground in Chinese AI Chip Market Amid Huawei's Rise

Published on 5.23.25

  Nvidia Loses Ground in Chinese AI Chip Market The Biden administration's ban on exporting advanced memory components to Chinese chipmakers has prompted China to invest heavily in developing its own supply chain, forcing companies like Huawei to purchase semiconductors from domestic designers. Nvidia CEO Jensen Huang has urged the US government to ease restrictions on AI chip sales, labeling them a "failure" in containing China's technological advancement. Nvidia's market share in China has dropped significantly, from 95% at the start of Joe Biden's presidency to 50%, due to local companies accelerating their development using locally developed technology and a talented workforce. Huawei Technologies Co., a Chinese rival, has capitalized on this opportunity, with its own AI chip sales increasing as a result. Nvidia CEO Jensen Huang criticizes the tiered restrictions, stating that they have allowed local companies in China to develop their own technology, rendering the policy ineffective. The situation highlights the challenges of regulating advanced technologies and the impact it has on Nvidia's position within the Chinese market.

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