China's chip challenge to Nvidia - Asian Tech Roundup

Plus: SK Hynix’s US IPO

Welcome to Computing's weekly roundup of tech news in Asia. This time we look at Nvidia’s plummeting market share in China, SK Hynix’s plans for an IPO in the USA, and Australia mulling punitive action against social media companies.

Chinese semiconductor firms are rapidly gaining ground in the country’s AI chip market, squeezing Nvidia’s once‑dominant position as Beijing pushes its tech firms to adopt domestic alternatives.

According to IDC, Chinese vendors accounted for 41% of China’s AI server market in 2025, shipping 1.65 million AI GPUs out of a total 4 million units.

Nvidia's market share fell from a pre-sanctions figure 95% to just 55% less than a year later. That still represents 2.2 million chips shipped, a sizable quantity given the stop-go nature of the sanctions, and many more may have entered the country via illegal routes - but it's still a big drop.

Huawei has been the biggest beneficiary of Beijing’s industrial push and Washington's restrictions, delivering 812,000 AI chips, around 20% of the total. The company has just launched its Atlas 350 AI accelerator, which it claims delivers nearly three times the performance of Nvidia’s H20 chip. Alibaba-owned T-Head came third with 256,000 units (7%), while AMD took a 4% share. Baidu and Cambricon completed the top five, each with around 3%. Comparable market-share data for 2024 is not publicly available.

The shift towards self-sufficiency in silicon was accelerated by the US's tightening export controls. Nvidia and AMD were barred from selling their most advanced chips to China in 2023, with Chinese firms restricted to cut-down versions such as Nvidia’s H20 and AMD’s MI308. Later Trump imposed a blanket ban on AI GPU exports, forcing companies to turn to inferior domestic supplies but also strengthening Chinas resolve to catch up. The bans were partially reversed later, but uncertainty around access to US chips since then, plus growing tensions has cemented that resolve.

Despite the chip boost, Huawei’s bounce-back from global bans has slowed, with income from infrastructure and consumer devices mostly flat. The company's 22% revenue growth in 2024 was reduced to 2.2% in 2025, with its cloud business actually declining 3.5% in 2025, at a time when global cloud markets were growing at around 30%. Intense competition from rivals such as Alibaba and ByteDance was the main factor. Meanwhile, Huawei spent a record 192.3 billion yuan on R&D in 2025 (22% of revenue), focusing on chips, software and manufacturing tools to reduce reliance on US technology.

Australia

• Australia’s eSafety Commissioner is considering legal action against Facebook, Instagram, Snapchat, TikTok and YouTube for failing to prevent children under 16 from holding accounts. Platforms could face fines up to $33 million. Source
• Doctors in Australia are increasingly using AI-powered tools to automate patient note-taking, aiming to reduce administrative workload. Source
• The Australian government has announced an agreement between Anthropic covering economic data sharing, AI testing, and research. Source

China

• Chinese chipmakers have captured 41% of the local AI server market, delivering 1.65 million AI chips in 2025, as government policies push data centres to adopt domestic alternatives. Source
• Nvidia’s market share has dropped to 55%, down from 95% before US sanctions, with Huawei leading among Chinese vendors. Source
• Huawei reported a 22% increase in annual revenue, driven by strong sales in its consumer electronics and cloud computing divisions. Source
• The US and China have escalated their trade standoff ahead of Trump’s visit, with new tariffs and restrictions hitting technology firms and cross-border investments. Source
• Xiaomi and Alibaba have significantly increased their recruitment for AI-related positions, with over 80% of Alibaba’s current openings focused on AI. Source
• AI company Ziphu posted a 132% rise in annual revenue, its latest GLM-5 model is reported to ⁠match US rivals on several benchmarks. Source
• Alibaba has integrated its Qwen AI chatbot into shopping platforms Taobao and Tmall, enabling users to complete purchases and bookings directly within the chat interface. Source
• Students in China are renting AI-powered smart glasses to cheat on exams, reports say. Source
• The FBI has issued warnings about the use of Chinese mobile apps, citing significant risks to data security and privacy for users. Source
• Baidu’s Apollo robotaxi service has been temporarily suspended, reflecting regulatory and operational challenges for autonomous vehicles in China. Source
• Unitree Robotics, China's leading humanoid robot company, is planning an IPO that could value it at up to ¥50 billion ($7 billion). The company sold 5,500 humanoid robots last year with its robots already deployed in major Chinese factories. Source

India

• The Ministry of Home Affairs has warned Indian Android users about God Mode malware, which can allow attackers control over devices, often impersonating banking or government apps. Source
• Bellatrix Aerospace has raised $20 million in a pre-Series B round to fund development of its propulsion systems for satellites and space missions. Source
• India’s IT Amendment Rules 2026 introduce stricter platform compliance requirements, including obligations for handling deepfake and AI-generated content. Source
• Bharti Airtel’s Nxtra has raised $1 billion, increasing its valuation to $3.1 billion as the company expands its datacentre operations. Source
• India has banned Chinese CCTV makers including Hikvision and Dahua from its market, over surveillance concerns. Source

Japan

• SoftBank has secured a $40 billion loan to cover its $30 billion commitment to OpenAI, signalling confidence in a possible OpenAI IPO later this year; the loan is unsecured and must be repaid or refinanced within 12 months. Source
• Fujitsu is to develop advanced 1.4-nm chips for AI processing, with production outsourced to Rapidus, as Japan pursues greater economic security in semiconductor technology. Source
• Mitsubishi will become the first Japanese company to use JPMorgan’s blockchain service for instant international fund transfers. Source

South Korea

• Rebellions, a South Korean AI chip startup, has launched a rack-scale AI system designed to compete with global leaders in high-performance computing. Source
• SK Hynix is preparing for a major US IPO that could help resolve the ongoing global shortage of RAM chips. Source
• South Korean chip giants are also increasing their investments in China to address a global shortage of AI memory chips and to secure supply chains. Source
• South Korea's chipmakers have enough helium stocks to last until June, despite ongoing global supply concerns, according to industry sources. Source

Taiwan

• Nvidia is reportedly adjusting production volumes of its Rubin Ultra, which was planned to be mass-produced using TSMC's 3nm process due to production bottlenecks at the world's largest foundry. Source
• A new US bill aims to strengthen ties with Taiwan, focusing on technology collaboration and supply chain security amid rising regional tensions. Source

Elsewhere in Asia

• Indonesia: Last weekend Indonesia introduced a ban on social media for under-16s, barring them from creating and holding accounts on online platforms. Australia imposed such a ban last year. Source
• Thailand: Microsoft has committed $1 billion to build new cloud and AI infrastructure in Thailand, marking one of the largest tech investments in the country’s history. Source
• North Korea: North Korean operatives are using AI-generated CVs and stolen identities to infiltrate US companies. Source
• Singapore: Singapore prosecutors have charged another individual with fraud in person in relation to a chip smuggling case featuring Dell and Super Micro. Source