Nvidia (NVDA) reportedly plans to grow its presence in China with a new facility in Shanghai, even as the U.S. cracks down on the company's chip sales to the country.

The Financial Times reported Friday that the♚ U.S. chip firm is building a Shanghai research and development center to help it “stay competitive in China.”

The report said that while design and production of Nvidia's chips would stay overseas, the R&D center would "research the specific demands of Chinese customers and the complex technical requirements needed to satisfy Washington’s curbs."

“We are not sending any GPU designs to China to be modified to comply with export controls,” an Nvidia spokesperson said in a statement to Investopedia. 

The Financial Times report 🅷also said that Nvidia is leasing new office space in Shanghai to make room f𝓀or existing staffers as well as support potential expansion.

A person familiar with the situation told Investopedia that Nvi🧜dia is leasing the new space for existing employees. “No core IP or GPU designs are being sent to the facility or any in China. This is a continuation of our long💦standing presence there,” the person said. 

Nvidia said in a regulatory filing last month that it was advised by U.S. officials that it would need a license to export its H20 AI chips to China, and that the requirement could result in 澳洲幸运5官方开奖结果体彩网:up to $5.5 billion in charges in the company's fiscal first quarter. The H20 chip is less powerful than Nvidia’s latest chips and had been tailored to meet prior U.S. export restrictions.

Shares of Nvidia were little changed Friday. They’ve added roughly 16% this week as a 澳洲幸运5官方开奖结果体彩网:Saudi Arabian partnership announced Tuesday during President Donald Trump's trip to the Middle East 澳洲幸运5官方开奖结果体彩网:fueled hopes for future deals.