NVIDIA plans to establish a research and development center in Shanghai to deepen local demand and respond to export controls
NVIDIA plans to establish a research and development center in Shanghai to address export controls and meet the demand for high-end chips in the Chinese market. The center will focus on developing technology solutions that comply with U.S. export regulations while participating in global R&D projects. NVIDIA's CEO met with the mayor of Shanghai to discuss this matter, which is expected to strengthen its position in China's AI ecosystem. This move reflects the response strategies of U.S. semiconductor companies in the context of geopolitical issues
According to informed sources, global chip giant NVIDIA (NVDA.US) is planning to establish a new research and development center in Shanghai to deepen its strategic layout in the Chinese market. This move reflects the balancing act of American semiconductor companies in response to geopolitical games, while also exposing the strong demand for high-end chips in China's AI industry.
The source stated that NVIDIA CEO Jensen Huang met with Shanghai Mayor Gong Zheng last month to discuss the establishment of the R&D center. NVIDIA will also lease a new office building for existing employees and future business expansion. To support the operation of the new R&D center, NVIDIA has initiated a large-scale talent recruitment. Currently, the company has about 2,000 employees in China, and this expansion will further strengthen its position in China's AI ecosystem.
According to the plan, the center will have dual functions: on one hand, it will focus on the specific needs of Chinese customers and develop technology solutions that comply with U.S. export control regulations; on the other hand, it will participate in global R&D projects, covering chip design verification, performance optimization, and vertical industry research.
It is understood that NVIDIA is currently facing increasingly strict export controls from the U.S. Its H20 AI chip, customized for the Chinese market, has been affected, but demand for its AI chips from tech giants like ByteDance and Tencent remains high. Data shows that the Chinese market contributed about 14% of NVIDIA's revenue in 2024, and Jensen Huang predicts that the future market size for AI chips in China could reach $50 billion.
In this contradictory situation, the Shanghai R&D center is seen as a key breakthrough—both to avoid regulatory risks through localized R&D and to leverage the benefits of Chinese engineers to support global technological innovation
