NVIDIA plans to establish a new research and development center in Shanghai as part of its strategy to strengthen its presence in the Chinese market. CEO Jensen Huang met with Shanghai’s mayor, Gong Zheng, in April to discuss the initiative, which aims to tailor AI chip development to meet the specific needs of Chinese customers while navigating complex U.S. export restrictions.
The new center will focus on adapting NVIDIA’s technology to comply with Washington’s stringent export controls, which have significantly impacted NVIDIA’s sales in China. Although core chip design and manufacturing will remain outside China to protect intellectual property, the Shanghai team will contribute to global projects such as chip design verification, product optimization and research in key sectors like autonomous driving.
NVIDIA currently employs around 2,000 staff in Shanghai, mostly in sales and support roles, and is expanding office space to accommodate growth. The company is actively recruiting top AI talent in China to lead next-generation hardware and software development, including ASIC design and optimization.
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China accounted for about 14% of NVIDIA’s revenue in 2024, and Huang has highlighted the country as a potential $50 billion market in the coming years. Despite tighter U.S. export controls limiting shipments of NVIDIA’s latest H20 AI chips, the company has been adjusting product performance to comply with regulations while maintaining strong demand from major Chinese AI firms such as Bytedance, Tencent, Baidu, and DeepSeek.
This move underscores NVIDIA’s commitment to maintaining competitiveness in China amid geopolitical challenges and export curbs. It also reflects the broader industry trend of balancing global innovation with compliance to evolving trade restrictions.
NVIDIA’s decision to build an R&D center in Shanghai comes at a time when the U.S.-China tech tensions are intensifying, and companies face pressure to localize research efforts to sustain market access. By investing in local R&D, NVIDIA aims to stay ahead of domestic Chinese competitors like Huawei, who are rapidly advancing in AI chip technology.
In summary, NVIDIA plans of Shanghai research and development center will serve as a hub for innovation tailored to the Chinese market, helping the company navigate export restrictions while leveraging local talent and contributing to global research initiatives. This strategic expansion highlights NVIDIA’s long-term commitment to China despite the complex regulatory environment.
