{"id":55224,"date":"2025-10-28T16:08:55","date_gmt":"2025-10-28T20:08:55","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/nvidia-exits-china-ai-chip-market-as-nissan-and-mercedes-benz-shutter-mexican-joint-venture-plant\/55224\/"},"modified":"2025-10-28T16:08:55","modified_gmt":"2025-10-28T20:08:55","slug":"nvidia-exits-china-ai-chip-market-as-nissan-and-mercedes-benz-shutter-mexican-joint-venture-plant","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/nvidia-exits-china-ai-chip-market-as-nissan-and-mercedes-benz-shutter-mexican-joint-venture-plant\/55224\/","title":{"rendered":"Nvidia Exits China AI Chip Market as Nissan and Mercedes-Benz Shutter Mexican Joint Venture Plant"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>) has completely exited the Chinese AI chip market, with CEO Jensen Huang confirming the company&#39;s market share in advanced AI chips has plummeted from 95% to zero due to stringent U.S. export controls and Chinese policy restrictions.<\/strong><\/li>\n<li><strong>Nissan Motor Co. (<a href=\"\/stock\/NSANY\">NSANY<\/a>) and Mercedes-Benz Group AG (<a href=\"\/stock\/MBGYY\">MBGYY<\/a>) are set to close their joint COMPAS automotive assembly plant in Aguascalientes, Mexico, by May 2026, marking a significant step in Nissan&#39;s global restructuring efforts and reflecting shifts in market demand.<\/strong><\/li>\n<li><strong>The closure of the $1 billion Mexican plant, which had an initial annual production capacity of 230,000 vehicles, is part of Nissan&#39;s broader plan to reduce its global manufacturing footprint and cut 20,000 jobs.<\/strong><\/li>\n<li><strong>Nvidia anticipates zero revenue from China going forward but remains optimistic about the global market for AI-grade silicon, projecting $4 trillion in data center infrastructure upgrades by 2030.<\/strong><\/li>\n<\/ul>\n<p>In a significant geopolitical and corporate development, <strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong> CEO Jensen Huang has announced the complete cessation of the company&#39;s business operations in China, with its market share for advanced AI chips in the region collapsing from <strong>95% to zero<\/strong>. This drastic change is attributed to escalating trade tensions, stringent U.S. export restrictions, and the Chinese government&#39;s policies discouraging the purchase of foreign AI chips. Huang confirmed that high-performance chips such as the <strong>A100, H100, and H200 models<\/strong> are now entirely barred from Chinese sales, and the company has not yet applied for licenses to ship its new Blackwell chips to China.<\/p>\n<p>Meanwhile, the automotive sector is also undergoing significant shifts, as <strong>Nissan Motor Co. (<a href=\"\/stock\/NSANY\">NSANY<\/a>)<\/strong> and <strong>Mercedes-Benz Group AG (<a href=\"\/stock\/MBGYY\">MBGYY<\/a>)<\/strong> are preparing to shutter their joint COMPAS assembly plant in Aguascalientes, Mexico. The plant, a <strong>$1 billion investment<\/strong> built in 2015 with an initial annual production capacity of <strong>230,000 vehicles<\/strong>, is slated for closure by <strong>May 2026<\/strong>. This move is part of Nissan&#39;s broader global restructuring plan aimed at reducing excess production capacity and optimizing its manufacturing footprint, which includes scaling back facilities from 17 to 10 sites globally and a reduction of <strong>20,000 staff<\/strong>.<\/p>\n<p>The closure of the Mexican plant follows Nissan&#39;s earlier confirmation in July of the closure of its CIVAC plant and reflects <em>global restructuring efforts and shifts in market demand<\/em>, partly influenced by <strong>U.S. tariffs<\/strong> imposed on Mexican goods. Production of Infiniti vehicles at COMPAS is expected to cease in November, with Mercedes-Benz output continuing until the final plant shutdown in May 2026. Mercedes will specifically halt GLB production during the first quarter of 2026.<\/p>\n<p>For <strong>Nvidia (<a href=\"\/stock\/NVDA\">NVDA<\/a>)<\/strong>, the complete shutout from China means the company is now forecasting <strong>zero revenue<\/strong> from the region. Despite this significant loss of a major market, Huang remains optimistic about the global demand for AI-grade silicon, projecting that data center operators will invest <strong>$4 trillion<\/strong> through 2030 to upgrade infrastructure for AI. The company&#39;s stock reaction to the China exit has been relatively muted, aligning with broader market trends. However, Huang has expressed concern that policies harming China could also negatively impact American technological leadership, especially given China hosts nearly half of the world&#39;s AI researchers and Chinese competitors like Huawei are rapidly advancing domestic alternatives.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Nvidia (NVDA) has completely exited the Chinese AI chip market, with CEO Jensen Huang confirming the company&#39;s market 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