Action comes in response to United States restrictions on the Chinese semiconductor sector
China announced the start of an anti-monopoly investigation against Nvidia this Monday (Dec 9, 2024). The action is seen as a response to restrictions imposed by the United States on the Chinese semiconductor sector.
The investigation will be conducted by SAMR (State Administration for Market Regulation) and will also investigate possible breaches of commitments by Nvidia in the acquisition of Mellanox Technologies in 2020. SAMR did not specify how Nvidia may have violated antimonopoly laws.
Nvidia has not commented on the case, but the investigation led to a 2% drop in its shares.
On December 2, the for 140 Chinese semiconductor companies, including chip equipment manufacturers.
The newly implemented policy bans the sale of certain types of chips and machinery to China, adding more than a hundred Chinese companies to a restricted trade list. The action is the 3rd round of restrictions against Beijing, following initiatives in 2022 and 2023.
In retaliation, China banned exports to the United States of minerals critical for semiconductor manufacturing. Before the restrictions, Nvidia led the Chinese AI (artificial intelligence) chip market.
