[News] NVIDIA Said to Build Shanghai R&D Hub Amid U.S. Export Curbs, But Core Design Could Stay Abroad

Amid tightening U.S. export controls, NVIDIA has seen a sharp revenue decline in China. According to Economic Daily News, citing Financial Times, the company reportedly plans to set up a new R&D center in Shanghai to bolster its position in the market. The center will focus on solutions tailored to Chinese customer needs while addressing complex U.S. export restrictions, the report notes.

Financial Times, citing sources, reveals that NVIDIA CEO Jensen Huang visited Shanghai last month and met with Mayor Gong Zheng to discuss the plan. The company has already leased new office space in Shanghai to accommodate existing employees and prepare for future expansion, the report highlights.

Meanwhile, the report notes that transferring intellectual property to China may pose legal risks, so NVIDIA will keep its core design and manufacturing overseas. The company emphasized that they are not sending any GPU designs to China for modification in order to comply with export restrictions, as cited by the report.

Sources cited by the report also say NVIDIA’s Shanghai team will join global R&D efforts, including chip design verification, product optimization, and research in areas like autonomous driving.

As noted by the report, CEO Jensen Huang aims to attract AI talent in China. The company has already posted multiple job openings in Shanghai and currently employs around 2,000 people there, mostly in sales and support roles.

The Trump administration has introduced a new wave of AI chip restrictions aimed at China. Recently, according to CNBC, the U.S. Commerce Department issued a warning against the use of American AI chips in Chinese models and highlighted concerns over “diversion tactics” and the need to secure supply chains to prevent smuggling.

NVIDIA has been emphasizing the importance of the Chinese market. In an interview with CNBC, CEO Jensen Huang said China’s AI market could grow to around $50 billion in the coming years—and missing out would be a “tremendous loss.” According to Reuters, China generated $17 billion for the U.S. chip giant in the fiscal year ending January 26, accounting for 13% of its total revenue.

The Information revealed that NVIDIA has notified key Chinese customers—including Alibaba, ByteDance and Tencent—that it is redesigning its AI chips to comply with U.S. export rules. The company reportedly told clients that samples of the new chip could be ready as early as June.

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(Photo credit: NVIDIA)