Analysts project Chinese AI chips to take nearly 90% of domestic sales

TrendForce projects that high-end AI processors developed by Chinese companies will account for nearly 90% of China's sales in 2026, up from 45% last year and from its December outlook of about 50%. The forecast follows U.S. export restrictions and Chinese encouragement of domestic chips, with Huawei, Cambricon and cloud-company ASICs expected to supply demand. The projection depends on a sharp production increase: replacing the affected foreign supply while retaining a roughly 4 million-unit market would require domestic output to rise substantially.