Report: Nvidia Plans China Research Center as Export Curbs Bite

FILE PHOTO: Nvidia logo is seen in this illustration taken, January 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Nvidia logo is seen in this illustration taken, January 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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Report: Nvidia Plans China Research Center as Export Curbs Bite

FILE PHOTO: Nvidia logo is seen in this illustration taken, January 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
FILE PHOTO: Nvidia logo is seen in this illustration taken, January 27, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

US chipmaker Nvidia is planning to build a research and development center in Shanghai, the Financial Times reported Friday, as tighter export restrictions imposed by Washington threaten sales in the key Chinese market.

The tougher US controls in recent years have prevented the California-based firm from selling certain AI chips -- widely regarded as the most advanced in the world -- to China.

As a result, it is now facing tougher competition from local players in the crucial market, including Huawei.

Nvidia boss Jensen Huang discussed plans to set up a research and development center in Shanghai with its mayor during a visit to the city last month, the FT reported, citing two unnamed people familiar with the matter.

The site would "research the specific demands of Chinese customers and the complex technical requirements needed to satisfy Washington's curbs", said the report.

It added that "actual core design and production" would remain outside of China in order to comply with intellectual property transferal regulations.

Nvidia did not immediately respond to an AFP request for comment, nor did Shanghai authorities.

During a visit to Beijing in April, Huang met with Vice Premier He Lifeng, telling him that he "looked favorably upon the potential of the Chinese economy", according to state news agency Xinhua.

Huang said he was "willing to continue to plough deeply into the Chinese market and play a positive role in promoting US-China trade cooperation", Xinhua said.

The tightened US export curbs come as China's economy wavers, with domestic consumers reluctant to spend and a prolonged property sector crisis weighing on growth.

President Xi Jinping has called for the country to become more self-reliant as uncertainty in the external environment increases.

Xi said last month that China should "strengthen basic research, focusing our efforts on overcoming challenges in key technologies such as advanced chips and core software, and building an autonomous AI system", according to Xinhua.

Washington has expanded its efforts in recent years to curb exports of state-of-the-art chips to China, concerned that these can be used to advance Beijing's military systems and otherwise undermine US dominance in artificial intelligence.



Taiwan May Exports Hit Record on AI Demand and Ahead of US Tariffs

A man rides a motobike on the street with wind turbines in the background, in Changhua, Taiwan May 9, 2025. REUTERS/Ann Wang
A man rides a motobike on the street with wind turbines in the background, in Changhua, Taiwan May 9, 2025. REUTERS/Ann Wang
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Taiwan May Exports Hit Record on AI Demand and Ahead of US Tariffs

A man rides a motobike on the street with wind turbines in the background, in Changhua, Taiwan May 9, 2025. REUTERS/Ann Wang
A man rides a motobike on the street with wind turbines in the background, in Changhua, Taiwan May 9, 2025. REUTERS/Ann Wang

Taiwan's exports surged to a record in May on booming demand for artificial intelligence and as customers placed orders ahead of US tariffs which could take effect next month after a suspension period expires.

Exports increased 38.6% from the same month a year ago - the fastest pace in almost 15 years - to $51.74 billion, a record high and the first time the value of exports has exceeded $50 billion, the finance ministry said on Monday.

The expansion, the 19th consecutive monthly gain, was higher than the 25% expected by economists in a Reuters poll and surpassed April's 29.9% rise.

Taiwan companies such as TSMC , the world's largest contract chipmaker, are major suppliers to Apple , Nvidia and other tech giants.

May exports benefited from continued strong AI demand and customers bringing forward orders to hedge against the possibility of increased U.S. tariffs, the ministry said in a statement.

US President Donald Trump planned a 32% import levy on goods from Taiwan under his global tariff regime, until he announced a 90-day pause in April to allow for trade negotiations.

While AI and other new technologies should continue to support Taiwan's exports, the uncertainty surrounding the US tariffs and geopolitical risks could undermine the global economic outlook, the ministry said.

For June, the ministry expects exports to rise between 15% and 25% year-on-year.

In May, Taiwan's exports to the United States soared 87.4% year-on-year to $15.52 billion, a record in terms of growth and value, versus a 29.5% surge in the prior month.

Exports to China, Taiwan's biggest trading partner, climbed 16.6%, after rising 22.3% in April.

Taiwan's total exports of electronic components gained 28.4% in May on the year to $17.2 billion, with semiconductor exports up 30.1%.

Imports rose 25% to $39.13 billion, lower than economists' forecasts of 30.2%.