The competitive landscape of China’s AI chip market is undergoing a significant shift as Huawei gains ground against Nvidia. This development follows US sanctions on Huawei and export curbs on Nvidia’s advanced processors, altering the dynamics of the market.
Previously dominated by Nvidia, the mainland market is now seeing a potential shift, with Huawei poised to overtake its American rival. In response to US export restrictions on its A800, H800, and L40S processors, Nvidia has introduced lower-grade chips, such as the H20, tailored for China. However, these chips are being sold at a discount compared to Huawei’s Ascend 910B chips, reflecting the intensified competition and market challenges Nvidia faces.
Analysts predict that Huawei’s expanding AI chip business will soon dominate the market. AI boxes, deemed essential for businesses, are expected to predominantly feature local players led by Huawei. Insights from Pacific Securities and Counterpoint analysts underscore Huawei’s technological capabilities and substantial market potential.
Looking ahead, Huawei is expected to prioritize AI chips over mobile chips to secure a leading market position in China. Collaborations with companies like iFlyTek aim to address computing-power bottlenecks, with products like the Spark Number 1 AI box benchmarked against Nvidia’s A100 processor.