US semiconductor giant Nvidia Corporation is reportedly moving ahead with plans to establish a research and development (R&D) centre in Shanghai, according to the Financial Times, as the company adapts to increasingly restrictive export controls imposed by Washington.
The proposed R&D hub aims to support Nvidia’s efforts in navigating the growing complexities of the Chinese market, particularly in light of escalating US regulations that prevent the company from selling some of its most advanced artificial intelligence (AI) chips to China. These restrictions have opened the door for domestic competitors, most notably Huawei Technologies Co, to capture greater market share.
Nvidia CEO Jensen Huang is said to have discussed the initiative with Shanghai’s mayor during a visit to the city last month, sources familiar with the matter told the Financial Times. The Shanghai-based facility would focus on “researching the specific demands of Chinese customers and the complex technical requirements needed to satisfy Washington’s curbs.” Core chip design and production activities would remain outside China to comply with US regulations concerning intellectual property and technology transfers.
Nvidia and Shanghai authorities have not issued official comments in response to media queries.
Huang also visited Beijing last month, where he met Chinese Vice Premier He Lifeng. According to state-run news agency Xinhua, Huang expressed optimism about China’s economic prospects and signalled Nvidia’s intent to deepen its engagement with the Chinese market. He reaffirmed the company’s willingness to play a constructive role in facilitating trade ties between the United States and China.
This strategic move comes at a time of broader economic uncertainty in China. Domestic consumer confidence remains fragile, and a protracted crisis in the property sector continues to weigh heavily on overall economic growth. In response, Chinese President Xi Jinping has reiterated calls for technological self-reliance, emphasising the need to strengthen basic research and accelerate breakthroughs in critical technologies, including semiconductors and AI.
The Biden administration has in recent years tightened export controls on high-end chip technologies to China, citing concerns that they could be used to bolster Beijing’s military capabilities and undermine the US’s leadership in AI.
As geopolitical tensions persist and market conditions evolve, Nvidia’s decision to enhance its R&D footprint in Shanghai reflects a pragmatic approach to maintaining relevance and competitiveness in a market that remains central to the global tech landscape.
-Taipei Times
