Nvidia (NVDA.US) plans to establish an R&D center in Shanghai to maintain competitiveness in China, where sales have been dampened by U.S. export controls, the Financial Times, citing people familiar with the matter, reported.

Nvidia CEO Jensen Huang discussed the plan with Shanghai Mayor Gong Zheng last month, with the Shanghai government expressing preliminary support, report told. Nvidia is also pursuing U.S. government’s greenlight.

The company currently employs about 2,000 staff in Shanghai, primarily in sales, and is leasing new office space to accommodate existing employees and support expansion.

The new Shanghai R&D center will address specific customer needs in China while complying with complex U.S. regulatory requirements, sources divulged.

However, core design and production will remain outside China to avert legal sensitivities, such as intellectual property transfers.
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AAStocks Financial News
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