Going against Donald Trump, Jensen Huang-led Nvidia to open R&D center in China; here are the details
Even after the United States' tough stance on China, Nvidia CEO
Jensen Huang
now has plans to launch a new AI research facility in Shanghai, according to the Financial Times.
Nvidia's Strategic Commitment to China
The move marks Nvidia's greater commitment to the
China market
even as Washington imposes tighter export controls and trade tensions between both countries are at a peak.
The new research facility has been planned as China generated 14% of Nvidia's revenue, around $17 billion in fiscal year 2024, according to GuruFocus. Huang foresees even more potential, predicting that figure could balloon to $50 billion in a matter of years, highlighting the strategic value of the region to the chip giant's long-term growth prospects, as per the report.
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ensanity at its peak: Taiwanese fans are super excited as Nvidia CEO and AI hero Jensen Huang visits the country; here's why he's there
The chipmaker is under pressure since the United States has increased
export restrictions
and US president Donald Trump's tariff war has led to a fall in the company's China sales, Nvidia also faces competition in the country due to Huawei's chip push, according to GuruFocus.
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Nvidia Navigating Export Curbs and Competition
The AI research centre in its second-largest market is being launched to address complex technical requirements under White House restrictions while keeping chip design and production offshore to protect intellectual property, reported GuruFocus.
Apart from China-focused research and development, the Shanghai centre also aims to optimize existing products and explore adjacent markets like
autonomous driving
, while hiring top Chinese AI talent to strengthen its competitive edge, as per the report.
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According to the Financial Times, the local authorities have given preliminary support and Nvidia has lobbied the Trump administration for export license approval. Meanwhile, the US president has praised the CEO during a recent overseas trip, highlighting Nvidia's estimated 99% market share in advanced AI chips, reported GuruFocus.
FAQs
Why is Nvidia opening an AI centre in China?
To grow its business in its second-largest market and tailor tech to meet local demand while navigating US restrictions.
How important is China to Nvidia?
China made up about 14% of Nvidia's revenue in 2024, and CEO Jensen Huang thinks that could grow to $50 billion.
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