China opens antitrust probe into US chipmaking giant

The Chinese anti-monopoly regulator announced on Monday it has launched an antitrust investigation into US chipmaking giant Nvidia. The probe comes as Washington continues to tighten restrictions on technology exports to China.

According to a statement by the State Administration for Market Regulation (SAMR), the probe will look into Nvidia’s acquisition of Israeli chip designer Mellanox Technologies. Beijing greenlighted the multi-billion-dollar deal four years ago on condition that Nvidia would not discriminate against Chinese companies. Mellanox was obliged to provide information about new products to rivals within 90 days of making them available to the US firm.

“In recent days, due to Nvidia’s suspected violation of China’s anti-monopoly law and… restrictive conditions around Nvidia’s acquisition of Mellanox shares... the State Administration for Market Regulation is opening a probe into Nvidia in accordance with law,” the statement reads.

Nvidia shares slid more than 2% on Monday following the news on the Chinese probe into the company.

Founded in 1993, Nvidia originally designed graphics cards for computer gaming. It later added features to its chips designed for machine learning, increasing its market share. In recent years the surge of investment in AI technology has resulted in explosive growth for the company, with its shares climbing nearly 200% this year.

The investigation comes after the US issued new restrictions last week on the export of a broad range of chipmaking tools and software to China.

Beijing responded with a ban on shipments to the US of several dual-use items and key raw materials used in semiconductor manufacturing and military applications. The Chinese Ministry of Commerce has accused Washington of “weaponizing” economic and technological issues, warning that such practices seriously undermine international trade and threaten the stability of global industrial and supply chains.

The world’s two largest economies have in recent years been jostling for domination in key technology areas, including semiconductors. Washington has repeatedly tightened export controls to prevent Chinese firms from buying certain American components, citing risks to national security.

Beijing has slammed the export curbs, claiming that they run counter to globally recognized market rules.