Chinese watchdog probes Nvidia over antitrust violations

ISTANBUL

China’s State Administration for Market Regulation (SAMR) has launched an investigation into American chipmaker Nvidia for alleged violations of the country’s anti-monopoly law, the Chinese daily Global Times reported on Monday.

The investigation centers on Nvidia’s acquisition of the Israeli-American chip firm Mellanox Technologies, with the watchdog claiming the deal violates Chinese anti-monopoly regulations.

As a result of the probe, Nvidia’s stock dropped by 2%, amid concerns over the investigation’s potential impact on the company’s operations in China.

According to the South China Morning Post, the decision to investigate Nvidia is seen as an "apparent move" in response to the United States’ ongoing chip restrictions on China.

The restrictions were heightened following a November order from the US Department of Commerce, which instructed Taiwan Semiconductor Manufacturing Company (TSMC) to halt high-tech chip shipments to China. This came after reports that TSMC-made AI chips ordered by Huawei—on the US’ restricted list—were being shipped to China.

Since the order, TSMC has suspended the sale of 7-nanometer or smaller chips to Chinese firms, although Huawei has stated it is no longer producing chips through TSMC following its restrictions.