Nvidia to establish research and development center in Shanghai to help service Chinese customers

Nvidia is going to open a research-and-development center in Shanghai, its latest effort to maintain a foothold in China while still abiding by the tightened US export controls for Nvidia’s AI semiconductors. . 

The new teams will supplement the over 4000 already working in China.

The company is seeking to lease an office space in Shanghai for the new facility to accommodate existing employees and potential new hires, the people said. Officials in the city, where Tesla’s China plant is located, have told the company that it would offer tax breaks and reduce red tape for its new project, the people said. “We are not sending any GPU designs to China to be modified to comply with export controls,” a company representative said in a statement.

The company has downgraded its chips after Washington tightened its rules so that it could keep selling to China and says it will follow US export rules.

According tot he Wall street Journal, Nvidia has recently told some major customers in China that it is seeking to lower the performance of the H20, the latest chip Washington put under export controls, so that it could comply with the new rules, people familiar with the matter said. It also told clients that it’s designing a compliant chip based on its more advanced Blackwell architecture. Any new chips for China will need U.S. approval, which is finalizing details of its export rules.

Jeffrey Newman is a whistleblower lawyer representing doctors and nurses who have become whistleblowers reporting SEC violations, Medicare and Medicaid fraud. He also represents whistleblowers in IRS tax evasion cases and tariff fraud cases. Jeff frequently writes on events affecting world social developments. He can be reached at Jeff@JeffNewmanLaw.com or at 978-880-4758