Nvidia(US:NVDA) Huan Qiu Wang·2025-05-20 03:31Core Insights - Nvidia plans to establish a research and development center in Shanghai to enhance its localized R&D capabilities [1][2] - The company is renting new office space for existing employees as part of its ongoing commitment to the Chinese market [2] - Nvidia's revenue from the Chinese market is projected to account for 14% of its global revenue in 2024, approximately $17 billion [2] Group 1: Market Strategy - Nvidia's core products, such as the H100 chip, face export restrictions preventing direct sales to China, leading to the introduction of a "special version" H20 chip with only one-third the performance of the H100 [2] - The H20 chip is experiencing inventory buildup due to insufficient market competitiveness [2] - Nvidia's CEO has emphasized the importance of the Chinese market, with expectations that the AI chip market in China could reach $50 billion in the next two to three years [2] Group 2: R&D Focus Areas - The Shanghai R&D center will focus on three main areas: customized product development, global R&D collaboration, and local ecosystem partnerships [3] - Customized product development will include chip design validation and optimization tailored to Chinese customer needs, such as developing lower-capacity HBM chips compliant with export regulations [3] - The center will also engage in cutting-edge technology research, including autonomous driving systems, and collaborate with Nvidia's global R&D network [3] - Strengthening partnerships with Chinese universities, research institutions, and companies will be a priority, particularly in optimizing the compatibility of Nvidia's CUDA software system for the Chinese market [3]