TrendForce: China is accelerating the localization of high-end AI chips, with domestic solutions expected to account for nearly 90% of the market by 2026.

Taiwan-based market research firm TrendForce (TrendForce Consulting)’s latest supply chain survey shows that while recent reports have suggested China may relax import restrictions on NVIDIA H200, opening new possibilities for the chip’s entry into the Chinese market, there remains significant uncertainty over whether H200 shipments to China can proceed smoothly. Against the backdrop of restrictions on high-end GPU imports, China’s AI industry has not slowed down; instead, it is accelerating the construction of an independent and controllable local AI supply chain. TrendForce noted that the Chinese government has this year continued to promote the application of domestically produced AI chips, with relevant policy support expected to prioritize domestic manufacturers with strong growth potential, driving their expansion in China’s high-end AI server market. Meanwhile, China’s local AI industry chain is also accelerating maturity in key areas such as advanced process technology, advanced packaging, and thermal management, providing support for the further expansion of applications of domestic high-end AI chips. As domestic chips and their supporting industry chains continue to improve, China’s AI infrastructure is gradually reducing its reliance on foreign GPUs, forming a dual-track development model of “domestic GPUs + dedicated ASICs”. TrendForce projects that domestic solutions will account for nearly 90% of China’s high-end AI chip market by 2026, indicating that the supply structure of China’s high-end AI chip market is rapidly shifting toward local alternatives.