AMD and NVIDIA Shares Plummet in China’s Artificial Intelligence Market

According to TrendForce research center data, by the end of this year, the share of leading US technology giants NVIDIA and AMD in China’s AI chip market is expected to fall to just 10%. The change is directly linked to the strengthening position of local manufacturers and strict export restrictions. This was reported by Ixbt.com reports this.

In recent years, numerous bans and restrictions imposed on China by the administration in Washington have made the supply of foreign semiconductors significantly more difficult. As a result, China’s AI chip market has shifted toward a largely closed system, with the main focus placed on mobilizing domestic capabilities.

Growth of local companies

Despite the sharp change in market conditions, China’s AI chip market is expanding rapidly and is forecast to grow by 83% year over year. However, this massive growth is being driven not by foreign technologies, but entirely by domestic alternatives.

Huawei has emerged as the clear market leader in this segment, while Cambricon is also recognized as one of the strongest players. IT giants such as Alibaba, Baidu, and Tencent are likewise actively developing and deploying their own specialized AI chips.

NVIDIA’s alternative strategy

To retain at least part of its market position, NVIDIA is attempting to enter the Chinese market through new and distinctive approaches. According to IXBT.com, the company plans to sell its new RTX Pro 5000 Blackwell professional graphics card in the region.

The graphics card will feature 48 or 72 GB of GDDR7 memory. Although it is not a full-fledged AI accelerator, it stands out for fully complying with US sanctions requirements and being considerably cheaper than specialized AI chips.