China launches antitrust probe into Nvidia due to US-China tensions, shares fall 2.2%

From Investing.com: 2024-12-09 08:45:34

China has launched an investigation into Nvidia for suspected violations of anti-monopoly laws, seen as retaliation against U.S. curbs on the Chinese chip sector. The probe is related to Nvidia’s acquisition of Mellanox Tech. Nvidia’s shares fell 2.2% in pre-market trading. China has banned exports of critical minerals to the U.S.

In response to U.S. crackdown on China’s semiconductor industry, Beijing is fighting back. Chinese industry associations urge companies to buy local chips, calling U.S. chips “no longer safe.” Nvidia, which dominated China’s AI chip market, now faces competition from domestic rivals like Huawei. China accounted for 17% of Nvidia’s revenue last year.

Nvidia won approval from China in 2020 for its Mellanox acquisition, despite trade frictions. Conditions included prohibitions on forced product bundling and discriminatory treatment of customers. This is the first anti-monopoly probe into a foreign tech firm since Qualcomm’s investigation in 2013. Qualcomm later paid a $975 million fine to China.



Read more at Investing.com: China targets Nvidia with antitrust probe, escalating US chip tensions By Reuters