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.



Huawei Eyes Greater Role in Brazil Data Center Market

Huawei logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. (Reuters)
Huawei logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. (Reuters)
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Huawei Eyes Greater Role in Brazil Data Center Market

Huawei logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. (Reuters)
Huawei logo is seen during Munich Auto Show, IAA Mobility 2021 in Munich, Germany, September 8, 2021. (Reuters)

Chinese tech giant Huawei is interested in strengthening and improving its capacity as a supplier of data center solutions, it said in a statement to Reuters on Thursday, clarifying that it did not intend to invest directly in data centers.

Reuters had reported on Wednesday that Huawei was interested in Brazil's data center market but was waiting on the government to roll out a tax-break plan.

"We want the government to implement these incentives, which are good for the country, and the time has to be now," Atilio Rulli, Huawei vice president of public relations for Latin America and the Caribbean, told Reuters.

The government's plan to dole out tax breaks for tech investments in Brazil is set to be sent to Congress soon, a finance ministry adviser said last month.

Latin America's largest economy is looking to establish a foothold in the fast-growing data center industry, pulling from its ample renewable energy.

The country is already courting major investments from firms such as ByteDance, TikTok's Chinese parent company, Reuters has reported.

Huawei could provide connectivity, storage and energy for data centers, Rulli said, speaking on the sidelines of an event hosted by state development bank BNDES.

"Huawei continues to follow the incentive policy being conducted by the Ministry of Development, Industry, Trade and Services, and when in force, will continue to contribute reliable, scalable and sustainable solutions to accelerate the digital transformation in Brazil and Latin America," Huawei said in the statement on Thursday.