09:05 AM EDT, 05/16/2025 (MT Newswires) -- (Updates with Nvidia's ( NVDA ) response in the fifth paragraph and additional details in the sixth paragraph.)

Nvidia ( NVDA ) is looking to build a research and development center in Shanghai as the chipmaking giant seeks to stay competitive in China amid tighter US export controls, the Financial Times reported, citing two people with knowledge of the matter.

Nvidia ( NVDA ) Chief Executive Jensen Huang and Shanghai Mayor Gong Zheng discussed the plan in April, the unnamed sources told the publication.

The planned facility would research the specific demands of Chinese customers and the complex technical requirements needed to meet the curbs placed by the US, the FT reported, citing people with knowledge of the plans.

However, the actual core design and manufacturing will remain outside of China amid legal sensitivity around moving intellectual property to that market, according to the report.

An Nvidia ( NVDA ) spokesperson said in an email to MT Newswires that the facility was in line with US laws. "We are not sending any GPU designs to China to be modified to comply with export controls," the spokesperson said.

A person familiar with the matter told MT Newswires the company was leasing a new space for existing employees, describing the facility as "a continuation of [Nvidia's ( NVDA )] longstanding presence there."

Nvidia's ( NVDA ) stock was up more than 1% in recent premarket activity.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)