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Nvidia Continues To Grow In China, Despite US-China Tensions

Business Today ·  Dec 11 23:55
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Nvidia logo and sign on headquarters. Blurred foreground with green trees - Santa Clara, California, USA - 2020

Nvidia Corp. has significantly increased its workforce in China, adding hundreds of staff this year to enhance its research capabilities, particularly in the field of autonomous driving technology. By the end of 2024, the Santa Clara-based company is set to employ around 4,000 people, up from approximately 3,000 at the beginning of the year. This expansion includes the addition of about 200 employees in Beijing, who will focus on developing self-driving technologies, according to sources familiar with the company's operations.

Despite the challenges posed by US trade restrictions, which prevent Nvidia from selling its most advanced semiconductors in China, the country remains an important market for the company. Nvidia reported $5.4 billion in sales from China during the September quarter, underscoring its continued reliance on the region. In addition to its research expansion, Nvidia has also bolstered its after-sales service and networking software development teams.

The company is expanding its global workforce to meet the rising demand for its artificial intelligence (AI) chips. As of February 2024, Nvidia employed 29,600 people across 36 countries. In China, the company has grown to nearly 600 employees in Beijing, with a new office recently opened in the Zhongguancun tech hub. The expansion in China is part of Nvidia's broader strategy to strengthen its position in the rapidly growing AI and autonomous driving markets.

Beijing's support for domestic electric vehicle manufacturers has positioned the country as a leader in EV technologies, driving innovation and reducing prices for connected cars. Nvidia has been involved in developing driving automation and AI software for over a decade, although its efforts have yet to fully materialise in the market. With its expanding team in China, Nvidia is well-positioned to collaborate with local automakers seeking to enhance their offerings with cutting-edge technology.

However, Nvidia's relationship with Beijing has recently faced some challenges. The local antitrust regulator announced a probe into Nvidia's 2020 acquisition of Mellanox, which had previously been approved with conditions. This investigation, which could result in a fine or remedial measures, comes amid heightened US-China trade tensions, with US President-elect Donald Trump threatening further tariffs and China imposing an export ban on critical materials.

Bloomberg

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