Nvidia is at the center of an antitrust investigation launched by China’s State Administration for Market Regulation (SAMR). according to a ReportSurvey revisits NVIDIA 2019 Acquisition of Mellanox Technologiesapproved by Beijing in 2020 under strict conditions. These require Nvidia to supply its GPU and interconnect products to the Chinese market on “fair, reasonable and non-discriminatory terms” while ensuring compatibility with other companies’ hardware.
The investigation is a reaction to Nvidia’s compliance with U.S. export restrictions that limit the supply of advanced GPUs to China. The State Administration for Market Regulation accused Nvidia of violating conditions related to its acquisition of Mellanox. If proven, Nvidia could face a fine of up to $1.03 billion, equivalent to 10% of its revenue from China in 2024, one of the largest antitrust fines ever levied by Beijing.
The move appears to be part of China’s broader retaliation against U.S. trade policies. Implement strict export controls Regarding semiconductor technology, citing countries Safety worries. As a key player in artificial intelligence and high-performance computing, Nvidia is directly affected by these restrictions, resulting in supply constraints in China.
The antitrust investigation highlights growing tensions in the global semiconductor industry. China, which relies heavily on imported chips, views the U.S. restrictions as an attempt to curb its technological progress. Nvidia’s case highlights the risks foreign companies face as they navigate the political complexities of the U.S.-China trade dispute.
China’s decision to re-examine previously approved acquisitions signals Beijing’s increasing assertiveness in applying antitrust laws, particularly in areas considered strategic to its national interests. This approach could discourage foreign investment, as companies could face heightened regulatory scrutiny years after a deal is completed.
Nvidia has not officially responded to the accusations but remains a key player in the semiconductor market. Its GPUs are critical to the development of artificial intelligence, a field in which the United States and China are vying for dominance. Losing access to the Chinese market or facing significant financial penalties could have long-term consequences for Nvidia’s growth.
recent, The New York Times was accused Nvidia CEO Jensen Huang is considered one of the largest tax evaders in the United States. The New York Times believes that a series of tax evasion measures that have been implemented may reduce his family’s inheritance (inheritance). He is worth $127 billion. Ranked as the tenth richest person in the United States.