China has launched an investigation into US chipmaker Nvidia, accusing it of potential anti-monopoly violations. The move escalates the ongoing tech rivalry between the US and China, particularly in the semiconductor market.
This investigation follows recent US restrictions on the sale of advanced chips to Chinese companies, and analysts predict the conflict will intensify, especially with the possible return of Donald Trump to the White House. Nvidia expressed its willingness to cooperate, stating, “We are happy to answer any questions regulators may have.”
Chinese state media reported that the probe targets Nvidia’s 2020 acquisition of Mellanox Technologies, with allegations that the company violated its merger commitments. This comes after the US added 140 Chinese firms to a list requiring special export licenses and China retaliated with new export controls on key minerals like gallium and germanium.
Nvidia, valued at over $3 trillion, has expanded beyond gaming GPUs into AI chips, raising concerns among regulators globally. The company recently reported inquiries from authorities in the US, EU, South Korea, and China. Despite the geopolitical tensions, Nvidia’s sales to China, including Hong Kong, accounted for 13% of its revenue this year, down from previous levels due to US export restrictions.
CEO Jensen Huang has remained tight-lipped about the political risks, stating, “We guide one quarter at a time. Whatever the new administration decides, we’ll support it.”
As the US-China tech war intensifies, Nvidia faces growing scrutiny, with its role in the global semiconductor race under increasing examination.
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