Nvidia Plans Shanghai R&D Center Amid US Export Restrictions

Nvidia plans Shanghai research centre in new commitment to China

Nvidia is seeking to build a research and development centre in Shanghai that would help the world's leading maker of artificial intelligence processors stay competitive in China, where its sales have slumped due to tightening US export controls. Chief executive Jensen Huang discussed the plan with Shanghai's mayor Gong Zheng when they met in the Chinese city last month, according to two people with knowledge of the matter. Nvidia is leasing a new office space in Shanghai to accommodate existing employees as well as a potential expansion. According to people with knowledge of the plans, the R&D centre would research the specific demands of Chinese customers and the complex technical requirements needed to satisfy Washington's curbs. The actual core design and production will remain overseas however, due to legal sensitivity around transferring intellectual property to China. Nvidia said: "We are not sending any GPU designs to China to be modified to comply with export controls." The Shanghai team would also work on global R&D projects including verification of chip designs, optimisation of existing products and sector focus research such as autonomous driving, people with knowledge of the matter said. Huang also wants to ensure access to top artificial intelligence talent based in China. Nvidia is currently advertising roles based in Shanghai, including engineers to help "guide the development of next-generation deep learning hardware and software", and "develop and optimise ASIC designs that compete on a global scale". The Shanghai government had shown preliminary support for such plans, while Nvidia was lobbying the US administration for approval, said one of the people. The Silicon Valley company has about 2,000 employees in the Chinese city, mostly in sales and related support functions. Nvidia is expanding its research footprint in China as it seeks to maintain a leadership position in one of its largest overseas markets, where it fears local competitors led by Huawei could take over by offering a rival AI ecosystem. While China accounted for about 14 per cent of Nvidia's revenues last year, at about $17bn, Huang has estimated it could be a $50bn market in a couple of years. "We want to build the world's AI [where] American standards are being adopted around the world," Huang said last week at a Milken Institute event. "If we leave a market altogether, there's no question somebody else would step in. Huawei, for example, is very formidable . . . they'll step in." The Trump administration issued a warning this week to American and foreign companies around the world that the use of AI chips manufactured by Huawei could trigger criminal penalties for violating US export controls. Huang flew to Beijing to meet Chinese vice-premier He Lifeng on April 17, days after new export restrictions were imposed on Nvidia's H20 chip, a watered-down model that had already been redesigned to comply with Biden-era controls limiting sales to China. Given the restrictions on its best-selling chips in China, Nvidia is offering L20 processors -- lower-end chips without high-bandwidth memory and with less computing power -- to Chinese clients as an alternative, according to people with knowledge of the matter. Tech giants are understood to be hesitant to put in orders because the processors cannot compete with rival Chinese products on performance. "We are in an awkward situation where we either choose a worse Nvidia chip that runs on [its software system] Cuda, which means lower operational cost, or switch to Chinese chips altogether and live through the pain of switching systems," said one executive at a leading Chinese tech firm. Clients led by ByteDance, Alibaba and Tencent are monitoring geopolitical developments to evaluate whether Nvidia could offer a redesigned high-end chip to meet their needs. While Nvidia was exploring various options, there were no finalised plans because of legal uncertainty, the people said.

Nvidia seeks Shanghai R&D site after US chip curbs, say sources

HONG KONG, May 16 (Reuters) - Nvidia (NVDA.O), opens new tab is seeking a site in Shanghai for a research and development centre, three sources close to the matter said, reflecting the strategic significance of the Chinese market where U.S. curbs on advanced chip exports have hit sales. The U.S. chipmaker began the search in early 2025 and is primarily evaluating locations in Shanghai's Minhang and Xuhui districts, one of the sources said. The project gained momentum after a surprise visit to China by Nvidia CEO Jensen Huang last month, said two of the sources. Huang, who has consistently said China is critical to Nvidia's growth, made his visit immediately after the U.S. placed new restrictions on China-bound shipments of its H20 chips, the only AI chip the company can sell legally in China. Huang met senior Chinese officials, including Vice Premier He Lifeng and Shanghai's mayor Gong Zheng. Reuters reported earlier this month that Nvidia plans to release a downgraded version of the H20 chip for China in the next two months, as it seeks to prop up sales in the country, where it has been lost market share to domestic rivals such as Huawei. China generated $17 billion in revenue for Nvidia in the fiscal year ending January 26, accounting for 13% of the company's total sales. The local government of Shanghai, which hosts China's largest foreign business community, including firms such as Tesla (TSLA.O), opens new tab, has expressed willingness to offer incentives for the Nvidia project, including tax reductions, said two of the sources. The local authorities are also considering offering a substantial amount of land to Nvidia for its China R&D centre, one source added. Nvidia declined to comment, while the Shanghai city government did not immediately respond to a request for comment. The sources declined to be named, as the plan is not public. Following his visit to China, Huang told CNBC that the country's AI market could reach approximately $50 billion within the next two-to-three years. He said that being excluded from this rapidly expanding sector would represent a "tremendous loss" for Nvidia, especially as competition with Huawei intensifies. During an earnings call in February, before H20 chip sales to China were restricted, Nvidia executives said the company's sales to China were about half the level before U.S. export controls. Since 2022, the U.S. government has imposed restrictions on the export of Nvidia's most advanced chips to China, citing concerns over potential military applications. The Financial Times first reported on Friday about Nvidia's plan to build a R&D centre in China. Reporting by Julie Zhu, Clare Jim and Beijing Newsroom; Additional reporting by Che Pan and Max Cherney; editing by Barbara Lewis Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:ChinaADAS, AV & SafetySustainable & EV Supply Chain Julie Zhu Thomson Reuters Julie Zhu is a Hong Kong-based Senior Correspondent for Reuters, focusing on financial news and corporate deals across Greater China. Her coverage spans regulatory policies, M&A, IPOs, private equity, and financial institutions. Since joining Reuters in 2016, Julie has been at the forefront of covering the region's significant events including China's unprecedented regulatory crackdown and Beijing's COVID response policies. She was named Reuters' Reporter of the Year in 2021. Previously, Julie worked at the Financial Times where she reported on business and general news about South China and Hong Kong.

Nvidia says it is not sending GPU designs to China after reports of new Shanghai operation

Nvidia CEO Jensen Huang in Washington on April 30, 2025.Kevin Dietsch / Getty Images Nvidia said it won't be sending graphics processing unit plans to China following a report that the artificial intelligence chipmaker is working on a research and development center in Shanghai in light of recent U.S. export curbs. "We are not sending any GPU designs to China to be modified to comply with export controls," a spokesperson said in a statement to CNBC. The Financial Times was the first to report the news, citing two sources familiar with the matter. CEO Jensen Huang discussed the potential new center with Shanghai's mayor, Gong Zheng, during a visit last month, the FT reported. The center will assess ways to meet U.S. restrictions while catering to the local market, although production and design will continue outside China, according to the report. AI chipmakers such as Nvidia have been hit with major China roadblocks since 2022 as the U.S. began cracking down on sending advanced chips to China because of concerns of possible military use. Last week, the Trump administration said it would replace restrictions put in place under President Joe Biden with a "much simpler rule that unleashes American innovation and ensures American AI dominance." Nvidia said last month that it would take a $5.5 billion charge tied to selling its H20 GPUs in China and other countries. Huang has previously commented on the significance of China, which is one of the company's major market after the U.S., Singapore and Taiwan. He told CNBC this month that getting shut out of the world second-largest economy would be a "tremendous loss," estimating that China's AI market could hit $50 billion over the next two to three years. "We just have to stay agile," Huang told CNBC's Jon Fortt, in an interview alongside ServiceNow CEO Bill McDermott. "Whatever the policies are of the government, whatever is in the best interest of our country, we'll support," he added.

NVIDIA plans new R&D center in Shanghai, should help its AI GPU business in China

As an Amazon Associate, we earn from qualifying purchases. TweakTown may also earn commissions from other affiliate partners at no extra cost to you. NVIDIA CEO Jensen Huang is expected to unveil its new global HQ in Taipei, Taiwan this week with Computex 2025 starting in just a couple of days time, but now we're hearing news that NVIDIA is preparing to build a new R&D facility in Chinahai that would help the company stay competitive with AI GPUs in China. In a new report from the Financial Times, we're hearing that NVIDIA is reportedly looking to build a new research and development center in Shanghai, China, which would help the company stay competitive in China. NVIDIA has been hit with a sales dive over continuously tightened US export restrictions, so NVIDIA is working around that with this proposed new R&D facility in Shanghai. NVIDIA CEO Jensen Huang reportedly talked about his plans with Shanghai mayor Gong Zheng when the two met in the city last month, with the usual "according to two people with knowledge of the matter". NVIDIA is leasing a new office space in Shanghai that will house all of its existing employees, as well as room for expansion. According to FT's sources, the new R&D center would research the specific demands of customers and the complex technical requirements required to satisfy the United States' moving goal posts with export restrictions on high-end AI hardware. The actual core design and productivity will remain overseas, but due to legal sensitivity around transferring intellectual property to China, with NVIDIA saying: "We are not sending any GPU designs to China to be modified to comply with export controls". NVIDIA's new team Shanghai would also work on global R&D projects including verification of chip designs, optimizations of existing products and sector focus research including autonomous driving. Huang wants to also make sure there's access to top artificial intelligence talent that's based in China, with NVIDIA currently advertising roles based in Shanghai in preparation for its new R&D facility. This includes looking for new engineers that will help NVIDIA "guide the development of next-generation deep learning hardware and software, and develop and optimize ASIC designs that compete on a global scale". China represents around 14% of NVIDIA's total revenues in 2024 -- representing around $17 billion -- with Huang estimating this could rise up to be a $50 billion (or more) market in the next few years. NVIDIA CEO Jensen Huang said at a Milken Institute event last week: "We want to build the world's AI (where) American standards are being adopted around the world. If we leave a market altogether, there's no question somebody else would step in. Huawei, for example, is very formidable... they'll step in".

Nvidia CEO says next chip after H20 for China won't be from Hopper series

Nvidia CEO Jensen Huang confirmed the company will not release another Hopper-series chip for China due to US export restrictions. While evaluating alternatives, Nvidia plans a downgraded H20 version to retain market share amid rising competition. China, a key market, contributed $17 billion to Nvidia's revenue in the last fiscal year.Nvidia is evaluating how to address the China market after the US government placed limits on sales of its Hopper H20 chip there but will not put out another version from the Hopper series, CEO Jensen Huang said on Saturday. Asked what their next chip for China after the H20 was, he said: "It's not Hopper because it's not possible to modify Hopper anymore," Huang said, according to a livestream posted by Taiwan's Formosa TV News network. Huang, who has consistently said China is critical to Nvidia's growth, made a visit to China immediately after the US placed new restrictions on China-bound shipments of its H20 chips, the only AI chip the company can sell legally in China. Reuters reported earlier this month that Nvidia plans to release a downgraded version of the H20 chip for China in the next two months, as it seeks to prop up sales in the country, where it has lost market share to domestic rivals such as Huawei. The US Framework for Artificial Intelligence Diffusion, issued in January just a week before the end of former President Joe Biden's administration, aimed to limit AI chip exports to most countries. Huang also said that previous AI export regulations were wrong and should have been focused on maximising US technology globally. Trump has said he will cancel the AI diffusion rules that were introduced by the Biden administration. China generated $17 billion in revenue for Nvidia in the fiscal year ending January 26, accounting for 13% of the company's total sales.

Nvidia plans China research centre as export curbs bite: Report

Nvidia is planning to establish a research centre in Shanghai to address Chinese market needs while complying with US export controls. However, core design and production will remain outside China. Amid tighter US chip restrictions, Nvidia faces growing competition from firms like Huawei, as China pushes for greater technological self-reliance in AI and semiconductors.US chipmaker Nvidia is planning to build a research and development centre in Shanghai, the Financial Times reported Friday, as tighter export restrictions imposed by Washington threaten sales in the key Chinese market. The tougher US controls in recent years have prevented the California-based firm from selling certain AI chips -- widely regarded as the most advanced in the world -- to China. As a result, it is now facing tougher competition from local players in the crucial market, including Huawei. Nvidia boss Jensen Huang discussed plans to set up a research and development centre in Shanghai with its mayor during a visit to the city last month, the FT reported, citing two unnamed people familiar with the matter. The site would "research the specific demands of Chinese customers and the complex technical requirements needed to satisfy Washington's curbs", said the report. It added that "actual core design and production" would remain outside of China in order to comply with intellectual property transferral regulations. Nvidia did not confirm or deny the project when contacted by AFP, nor did Shanghai authorities. But a source close to the matter told AFP that Nvidia is "leasing a new space for existing employees", adding that "this is a continuation of our longstanding presence there". "We are not sending any GPU designs to China to be modified to comply with export controls," an Nvidia spokesperson told AFP, referring to graphics processing unit. During a visit to Beijing in April, Huang met with Vice Premier He Lifeng, telling him that he "looked favourably upon the potential of the Chinese economy", according to state news agency Xinhua. Huang said he was "willing to continue to plough deeply into the Chinese market and play a positive role in promoting US-China trade cooperation", Xinhua said. The tightened US export curbs come as China's economy wavers, with domestic consumers reluctant to spend and a prolonged property sector crisis weighing on growth. President Xi Jinping has called for the country to become more self-reliant as uncertainty in the external environment increases. Xi said last month that China should "strengthen basic research, focusing our efforts on overcoming challenges in key technologies such as advanced chips and core software, and building an autonomous AI system", according to Xinhua. Washington has expanded its efforts in recent years to curb exports of state-of-the-art chips to China, concerned that these can be used to advance Beijing's military systems and otherwise undermine US dominance in artificial intelligence.

Jensen Huang-Led Nvidia Plans New Shanghai Research Hub To Stay Competitive In China As US Export Curbs Threaten AI Chip Sales: Report - Alibaba Gr Hldgs (NYSE:BABA), NVIDIA (NASDAQ:NVDA)

Nvidia Corporation NVDA is reportedly expanding its research footprint in China with a new Shanghai-based R&D center, signaling a strategic push to retain AI dominance in the region amid tightening U.S. export restrictions. What Happened: Nvidia CEO Jensen Huang met with Shanghai Mayor Gong Zheng last month to discuss plans for the new facility, reported the Financial Times, citing two people with knowledge of the matter. Nvidia is already leasing new office space in Shanghai to house current staff and accommodate the expansion. While the company said that no GPU designs will be sent to China, the R&D center will focus on optimizing existing products, verifying chip designs and exploring use cases like autonomous driving, the report noted. See Also: Nvidia Modifies H20 Chip For China After US Restrictions Block Sales, Aims To Deliver New Version By July: Report "We are not sending any GPU designs to China to be modified to comply with export controls," Nvidia told the publication. Why It's Important: The move underscores Nvidia's delicate balancing act -- maintaining a presence in one of its largest overseas markets while adhering to U.S. export controls. China accounted for roughly 14% of Nvidia's revenue in 2023, or about $17 billion. Huang has said the market could be worth as much as $50 billion. Huang previously warned that limiting access to China's AI market could harm not only Nvidia's business but also U.S. jobs and technological progress. His remarks followed reports that Nvidia had notified major Chinese customers -- including Alibaba Group BABA, ByteDance and Tencent Holdings TCEHY -- that it is developing a modified version of AI chips to meet U.S. export restrictions. Price Action: Nvidia shares slipped 0.096% to $134.70 in after-hours trading, according to Benzinga Pro. According to Benzinga Edge Stock Rankings, Nvidia currently holds a growth score of 95.06%. Click here to see how it stacks up against top tech firms like AMD, Qualcomm, Alibaba and Tencent. Photo Courtesy: Hepha1st0s On Shutterstock.com Read Next: JPMorgan CEO Jamie Dimon Warns Recession Is Best-Case Outcome Of Trump Trade War Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. BABAAlibaba Group Holding Ltd $124.00-7.50% Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full Score Edge Rankings Momentum 95.25 Growth 73.65 Quality 48.27 Value 78.23 Price Trend Short Medium Long Overview NVDANVIDIA Corp $134.70-0.47% TCEHYTencent Holdings Ltd $66.16-2.53% Market News and Data brought to you by Benzinga APIs

NVIDIA Plans To Develop a New R&D Facility In Shanghai As Jensen Hopes To Rescue The Firm's Drowning Business In China

NVIDIA is now reportedly developing a new R&D center in China, as CEO Jensen Huang worries that they might lose their grip on the market. Team Green isn't having a great time in the Chinese markets, since the rounds of US export controls are making it difficult for the firm to stay committed to China. On top of that, with growing competition from the likes of Huawei, NVIDIA is losing its spot as the leading AI firm in the region, and this has apparently concerned Huang, who has now revealed plans to develop a dedicated R&D center in Shanghai, China. The report comes from The Financial Times, where it is claimed that NVIDIA now plans to directly address the needs of its Chinese customers through a "more localized" AI solution. To ensure that the core technology remains outside of China, NVIDIA won't be sending any core design and production to the centre; rather, the research will be driven by local talent. The Shanghai R&D center will also ensure that NVIDIA retains the top talent in China, rather than giving it away to the likes of Huawei, which is known for poaching employees from other companies. NVIDIA's CEO said previously that they cannot ignore the Chinese market at all, despite US restrictions, since someone else will step in if they don't. We want to build the world's AI [where] American standards are being adopted around the world. If we leave a market altogether, there's no question somebody else would step in. Huawei, for example, is very formidable . . . they'll step in. - NVIDIA's CEO at Milken Institute event NVIDIA is currently offering its L20 AI chips to the Chinese markets, after the recent H20 restriction, and the company has plans to introduce new Hopper and Blackwell variants, complying with US regulations. However, major Chinese tech firms are now resorting to alternatives, such as those from Huawei, as the uncertainty with options from NVIDIA has bothered them to a point where they are forced to make a choice. So, it won't be wrong to say that Team Green is losing ground in China.

NVIDIA's CEO Reveals Next Chip For China Will Likely Be a Blackwell Model, Says H20 Cannot Be Modified Anymore

NVIDIA is reportedly preparing for a more potent chip for the China AI market, as CEO Jensen Huang has revealed that they won't cut down on Hopper any further. After the recent H20 export restriction by the US, NVIDIA is exploring new options for the Chinese markets, in an attempt to maintain its influence in the region. While speaking to a Taiwanese media outlet (via Reuters), Huang revealed that the next chip for China will not be from the Hopper lineup, since the firm can no longer modify it further to comply with US restrictions. So, it seems like NVIDIA will switch to a new architecture for the Chinese market, and the leading candidate is likely Blackwell, which we'll discuss ahead. A report by Nikkei Asia claims that NVIDIA plans to introduce a new Hopper chip for China, but it won't be the leading option. This time, Team Green plans to utilize GDDR7 memory modules instead of HBM to comply with the bandwidth restrictions. It will be a similar option to NVIDIA's RTX PRO GPUs, but instead, it will employ the Hopper architecture. Moreover, NVIDIA's Blackwell chip for the Chinese market will also feature GDDR7 instead of HBM, and this looks to be the new move Team Green will employ to meet the performance restrictions. Interestingly, despite all the differences, the firm's new "China-specific" chips are still said to be better than Huawei's existing solutions since NVIDIA would leverage its superior architectural capabilities and software ecosystem. However, the uncertainty surrounding using NVIDIA products has ultimately forced Chinese firms to opt for in-house options, such as the Ascend chips from Huawei, and this has bothered NVIDIA to the point where Jensen now calls competition from China a "formidable" one. It would be interesting to see how NVIDIA stays relevant in China, given that Jensen has expressed intentions in the past to remain committed to the nation, but with growing relations with the Middle East, Team Green might have to pick sides.

Nvidia seeks Shanghai R&D site after US chip curbs, say sources

HONG KONG (Reuters) -Nvidia is seeking a site in Shanghai for a research and development centre, three sources close to the matter said, reflecting the strategic significance of the Chinese market where U.S. curbs on advanced chip exports have hit sales. The U.S. chipmaker began the search in early 2025 and is primarily evaluating locations in Shanghai's Minhang and Xuhui districts, one of the sources said. The project gained momentum after a surprise visit to China by Nvidia CEO Jensen Huang last month, said two of the sources. Huang, who has consistently said China is critical to Nvidia's growth, made his visit immediately after the U.S. placed new restrictions on China-bound shipments of its H20 chips, the only AI chip the company can sell legally in China. Huang met senior Chinese officials, including Vice Premier He Lifeng and Shanghai's mayor Gong Zheng. Reuters reported earlier this month that Nvidia plans to release a downgraded version of the H20 chip for China in the next two months, as it seeks to prop up sales in the country, where it has been lost market share to domestic rivals such as Huawei. China generated $17 billion in revenue for Nvidia in the fiscal year ending January 26, accounting for 13% of the company's total sales. The local government of Shanghai, which hosts China's largest foreign business community, including firms such as Tesla, has expressed willingness to offer incentives for the Nvidia project, including tax reductions, said two of the sources. The local authorities are also considering offering a substantial amount of land to Nvidia for its China R&D centre, one source added. Nvidia declined to comment, while the Shanghai city government did not immediately respond to a request for comment. The sources declined to be named, as the plan is not public. Following his visit to China, Huang told CNBC that the country's AI market could reach approximately $50 billion within the next two-to-three years. He said that being excluded from this rapidly expanding sector would represent a "tremendous loss" for Nvidia, especially as competition with Huawei intensifies. During an earnings call in February, before H20 chip sales to China were restricted, Nvidia executives said the company's sales to China were about half the level before U.S. export controls. Since 2022, the U.S. government has imposed restrictions on the export of Nvidia's most advanced chips to China, citing concerns over potential military applications. The Financial Times first reported on Friday about Nvidia's plan to build a R&D centre in China. (Reporting by Julie Zhu, Clare Jim and Beijing Newsroom; Additional reporting by Che Pan and Max Cherney; editing by Barbara Lewis)