TEMPO.CO, Jakarta - American chip company, Nvidia, plans to build a research and development (R&D) center in Shanghai, as reported by the Financial Times on Friday, May 16, 2025.
This move comes amid increasing export restrictions from Washington that threaten Nvidia's sales in key markets such as China, as reported by Channel News Asia. In recent years, export rules from the US have prohibited California-based Nvidia from selling certain AI chips to China. These chips are known to be the most advanced in the world. This policy has led to more intense competition for Nvidia from local companies such as Huawei.
The plan to build the R&D center in Shanghai was discussed by Nvidia's CEO, Jensen Huang, with the local mayor during his visit last month, according to the FT report. The location will focus on researching specific needs of Chinese customers and address complex technical requirements to comply with restrictions from Washington.
According to a report from the Xinhua news agency, during his visit to Beijing last April, Huang met with Vice Premier He Lifeng, and stated that he sees great potential in the Chinese economy.
Huang also expressed his willingness to continue developing the Chinese market and to participate in promoting US-China trade cooperation.
Meanwhile, the tightening export restrictions from the US occur amid economic uncertainty in China, with local consumers reluctant to spend and a prolonged crisis in the property sector weighing on growth.
Chinese President Xi Jinping has called for the country to be more self-reliant amid increasing global uncertainty. Last month, Xi stated that China must strengthen basic research, focus efforts on addressing key technology challenges such as advanced chips and core software, and build an independent AI system.
Washington has in recent years expanded its efforts to restrict the export of cutting-edge chips to China out of concern that the technology could be used to strengthen Beijing's military and threaten US dominance in artificial intelligence.
About Nvidia
According to wsj.com, Nvidia Corp was founded by Jen-Hsun Huang, Chris A. Malachowsky, and Curtis R. Priem in April 1993 and is headquartered in Santa Clara, California.
The company is involved in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. Nvidia operates through two main segments: Graphics Processing Unit (GPU) and Compute & Networking.
The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and infrastructure, Quadro GPUs and NVIDIA RTX for corporate workstation graphics, vGPU (virtual GPU) software for cloud-based visual and virtual computing, automotive platforms for in-vehicle entertainment systems, as well as Omniverse Enterprise software for building and running metaverse and 3D internet applications.
The Compute & Networking segment includes accelerated computing platforms for data centers and comprehensive network platforms, including Quantum for InfiniBand and Spectrum for Ethernet. This segment also covers the NVIDIA DRIVE autonomous driving platform and automotive development agreements, the Jetson platform for robotics and other embedded devices, NVIDIA AI Enterprise and other software, as well as DGX Cloud software and services.
Editor's Choice: US Cracks Down on Nvidia AI Chip Exports to China
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