NVIDIA to Open R&D Center in China as Shanghai Promises Tax Incentives

Amid ongoing U.S. restrictions on the export of AI chips to China, NVIDIA is reportedly planning to establish a new research and development center in Shanghai. According to the Financial Times, which cited sources familiar with the matter, NVIDIA CEO Jensen Huang visited China last month and discussed the initiative with the Mayor of Shanghai, who welcomed the plan.

Strengthening Presence in a Restricted Market

This strategic move follows three years of tightening U.S. export controls, requiring special licenses for the export of NVIDIA’s most advanced AI chips to China. As a result, the company's sales in China dropped from 26% of total revenue to just 13% in the last fiscal year.

According to sources, NVIDIA is seeking office space in Shanghai for the new R&D center. In return, the city has promised to grant tax incentives and reduce bureaucratic hurdles for the project. Currently, NVIDIA employs around 4,000 people in China—half of them based in Shanghai—primarily in sales and technical support roles.

The upcoming center will not only serve the Chinese market but also contribute to global development projects, including product optimization and research in autonomous driving. Huang has expressed his intention to ensure the company maintains access to China's highly skilled AI workforce. “We want to build global AI according to American standards,” Huang said at a conference last month. “If we completely abandon a market, someone else will fill the void—Huawei, for example,” he added, referring to the Chinese telecom giant that has been blacklisted by the U.S.

Parallel Expansion in the UAE

In addition to its China plans, NVIDIA is also set to play a key role in the development of the Stargate Project in the United Arab Emirates. According to CNBC, the company will supply its advanced Blackwell chips for the initiative, alongside major U.S. tech companies such as Cisco, Oracle, and OpenAI.

The project entails the construction of a massive data center in Abu Dhabi, which will be linked to the U.S.-based Stargate initiative announced by President Donald Trump in February. UAE tech firm G42 will lead the construction, building a 25.9 km² facility with a power capacity of 5 gigawatts.

High-Level Engagement in the Middle East

Huang and other tech CEOs joined Trump on his recent visit to the Middle East. While in Saudi Arabia, Huang announced that NVIDIA will sell 18,000 Blackwell chips to Saudi AI firm Humaine.

Meanwhile, the Trump administration has officially repealed previous regulations that had significantly restricted AI chip exports to most countries worldwide. However, separate and stricter export controls still apply to China specifically.

#Donald Trump

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