Financial · Tom's Hardware
Huawei could seize China’s AI chip crown in 2026 as Nvidia's H200 shipments stall in regulatory limbo — Beijing pushes homegrown AI hardware dominance in a market projected to hit $67 billion by 2030
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◎ Multiple-sources
A Financial Times report has claimed that Shenzhen-based Huawei is on track to capture the largest share of China’s AI chip market this year, following growing demand from Chinese firms seeking domestic alternatives to American chipmaker Nvidia.
Key facts
- The report comes as Huawei reportedly expects AI chip revenue to surge to $12bn, up from $7.5bn in 2025
- According to Morgan Stanley, China’s AI chip market could grow to roughly $67 billion by 2030, with domestic companies expected to supply around 86% of that demand
- The team reported earlier that Nvidia CEO Jensen Huang confirmed in March 2026 that the company had received U.S. licenses to sell H200 AI chips to China and was restarting production to meet demand
- Most of Huawei's AI chips are manufactured by Semiconductor Manufacturing International Corporation (SMIC), China’s leading fab
Summary
The report comes as Huawei reportedly expects AI chip revenue to surge to $12bn, up from $7.5bn in 2025. The move comes as NVIDIA’s China operations — once accounting for up to 25% of its data center business revenue — are being affected by export restrictions and regulatory barriers imposed by both the United States and China amid broader technological and trade tensions between the two countries. The team reported earlier that Nvidia CEO Jensen Huang confirmed in March 2026 that the company had received U.S. licenses to sell H200 AI chips to China and was restarting production to meet demand.