Nvidia planning Shanghai R&D hub to serve Chinese market
Published: 11:58 16 May 2025 EDT
Nvidia Corp (NASDAQ:NVDA, ETR:NVD) is strengthening its position in China with plans to establish a new research and development (R&D) center in Shanghai, according to a report from the Financial Times.
The Shanghai R&D facility will reportedly focus on adapting Nvidia technologies to better suit the Chinese market, without transferring sensitive GPU core designs.
In line with US export restrictions, the center will work on modified architectures and product variants, aiming to serve Chinese customer needs while keeping core chip design and production offshore to safeguard intellectual property.
The company is weighing locations in Shanghai’s Minhang and Xuhui districts, with municipal officials reportedly offering tax incentives and land to support the buildout.
Nvidia has also begun leasing new office space in the city to accommodate current staff and future hires.
The move comes amid mounting US export limitations that began in 2022, restricting Nvidia from selling its most advanced AI chips in China. The company has since pivoted to offering scaled-down versions, such as the H20 chip, which remain compliant.
China accounts for 14% of Nvidia’s $60.9 billion in fiscal 2025 revenue, or around $8.5 billion.
Huang has publicly emphasized the importance of China’s AI sector, estimating it could reach $50 billion in annual spending within two to three years.
Shares of Nvidia were unchanged at $134 on Friday, roughly flat in the year to date.
