Nvidia plans China research centre as export curbs bite Report

SHANGHAI – US chipmaker Nvidia is planning to build a research and development centre in Shanghai, the Financial Times (FT) reported on May 16, 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 company from selling certain artificial intelligence (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 in April, 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 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 units.

During a visit to Beijing in April, Mr Huang met Vice-Premier He Lifeng, telling him that he “looked favourably upon the potential of the Chinese economy”, according to state news agency Xinhua.

Mr 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