Nvidia Plans Shanghai R&D Center Amid U.S. Export Restrictions

Nvidia has announced plans to establish a research and development (R&D) center in Shanghai, aiming to strengthen its presence in China and navigate the challenges posed by recent U.S. export restrictions on advanced semiconductor technologies.

The initiative was discussed during a meeting between Nvidia CEO Jensen Huang and Shanghai Mayor Gong Zheng in April 2025. The company has already secured office space in Shanghai to accommodate existing staff and future expansion.

The Shanghai R&D center will focus on developing solutions tailored to the Chinese market, including software development, artificial intelligence applications, and next-generation GPU architectures. While core chip design and manufacturing will remain outside China to comply with U.S. export controls, the center aims to support global R&D efforts and collaborate with local academic institutions and tech firms.

This move comes in response to the U.S. government’s decision in April 2025 to require export licenses for Nvidia’s H20 AI chips to China, citing national security concerns. The restrictions have significantly impacted Nvidia’s sales in China, which accounted for $17 billion, or 13% of its total revenue, in the fiscal year ending January 26.

By investing in local research capabilities, Nvidia aims to maintain its competitiveness in the Chinese market and continue its leadership in AI development, despite the tightening export controls.