On Monday, China’s market regulators accused Nvidia of breaching the country’s anti-monopoly laws and mentioned that they would continue looking into major US chip manufacturers.
A brief statement from the state administration revealed that a “preliminary investigation” indicated Nvidia’s actions were in violation of Chinese laws concerning its $6.9 billion acquisition of Mellanox Technologies, an Israeli-American network and data transmitting firm.
The deal, finalized in 2020, received Beijing’s approval after Nvidia made certain commitments, including assurances to supply chips to China. However, the Biden administration has since imposed restrictions on exporting several advanced AI chips to China, complicating matters for Nvidia.
The statement did not elaborate on the specific violations alleged against Nvidia or any potential consequences, but it indicated that “further investigations” will be conducted.
Back in December, an investigation into Nvidia was launched due to supposed breaches related to the Mellanox acquisition. This occurred shortly after the Biden administration tightened restrictions on access to advanced chips for China.
According to Chinese regulators, by complying with US export controls, Nvidia failed to uphold its commitment to provide an uninterrupted chip supply to China and ensure fair treatment for Chinese consumers, as reported by an anti-trust lawyer familiar with the case.
This latest development happens while the Chinese deputy prime minister is in talks regarding customs and ownership issues related to TikTok, coinciding with Treasury Secretary Scott Bescent’s visit to Madrid.
Nvidia has found itself at the center of the US-China trade tensions. In April, President Trump allowed Nvidia to resume sales of certain chips that had previously been blocked. Meanwhile, China has been cautious, restricting companies from purchasing chips over cybersecurity issues until US chipmakers pass regulatory checks.
Additionally, China is ramping up its scrutiny of the US chip industry. Recently, the Commerce Department announced an anti-dumping investigation into specific analog IC chips imported from the US, alongside a separate probe into US actions affecting China’s chip sector.
Nvidia has not yet commented on the situation.
