India, May 15 -- TrendForce's latest research reveals that the surge in demand for AI servers is accelerating the pace at which major US CSPs are developing in-house ASICs, with new iterations being released every one to two years. In China, the AI server market is adjusting to new US export controls introduced in April 2025, which are expected to reduce the share of imported chips (e.g., from Nvidia and AMD) from 63% in 2024 to around 42% in 2025.

Meanwhile, domestic Chinese chipmakers-such as Huawei-are projected to boost their market share to 40%, nearly on par with imported chips, supported by strong government policies promoting homegrown AI processors.

TrendForce notes that CSPs are prioritizing ASIC development to reduce reliance...