Nvidia (NVDA) Eyes Shanghai R&D Hub After China Sales Halved

Faizan Farooque

Fri, May 16, 2025, 1:54 PM 1 min read

Nvidia (NVDA, Financials) is scouting locations successful Shanghai for a caller probe and improvement halfway to sphere its marketplace foothold successful China aft U.S. export restrictions sharply reduced its spot sales.

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Nvidia began exploring sites successful Shanghai's Minhang and Xuhui districts earlier this year, sources told Reuters. The propulsion accelerated aft CEO Jensen Huang's astonishment sojourn to China successful April, during which helium met Vice Premier He Lifeng and Shanghai Mayor Gong Zheng.

The determination comes weeks aft the U.S. imposed caller restrictions connected the H20 chip, the lone Nvidia AI processor approved for China. Nvidia plans to merchandise a downgraded mentation of the spot wrong 2 months to retrieve mislaid crushed against home rivals similar Huawei.

China contributed $17 cardinal successful gross successful Nvidia's fiscal twelvemonth ending Jan. 26, accounting for 13% of full sales. That fig has halved since U.S. export curbs began successful 2022, the institution said successful a February net call.

Shanghai authorities person reportedly offered taxation breaks and onshore incentives to enactment the R&D effort, though neither the institution nor the metropolis has confirmed the plans publicly.

Huang told CNBC China's AI marketplace could turn to $50 cardinal wrong 23 years and called exclusion from it a tremendous loss.

• This nonfiction archetypal appeared connected GuruFocus.