Sunday, June 1, 2025

Nvidia Faces Antitrust Scrutiny from China: Could This Change the Game?

China has launched an investigation into U.S. chip giant NVIDIA for potential antitrust violations, alleging non-compliance with regulatory conditions set during its 2020 acquisition of Israeli network solutions firm Mellanox. / Reuters Yonhap
China has investigated U.S. chip giant NVIDIA for potential antitrust violations, alleging non-compliance with regulatory conditions set during its 2020 acquisition of Israeli network solutions firm Mellanox. / Reuters Yonhap

China has launched an investigation into NVIDIA for potential antitrust violations, triggering a sharp decline in the company’s share price on Monday.

According to international media outlets, including CNBC, China’s State Administration for Market Regulation (SAMR) announced that it had initiated an investigation into NVIDIA’s acquisition of Mellanox and related agreements.

Mellanox, a joint Israeli-American venture acquired by NVIDIA in 2020, specializes in developing network solutions for data centers and servers.

SAMR’s statement read, “Due to suspicions of violations of Chinese antitrust laws and SAMR’s regulatory conditions concerning the Mellanox share acquisition, SAMR has recently initiated an investigation into NVIDIA by relevant laws.”

China’s SAMR imposed conditions on NVIDIA’s 2020 Mellanox acquisition, like other nations.

These included non-discrimination against Chinese firms and required NVIDIA to inform competitors within 90 days when Mellanox released and provided new products to NVIDIA.

Similar conditional approvals were granted by regulatory bodies in Europe, Mexico, and the United States.

As the Biden administration tightens regulations on major semiconductor companies, including NVIDIA, preventing the export of advanced semiconductors to China, China appears to retaliate with direct sanctions against the company.

This move suggests that if the U.S. blocks NVIDIA’s advanced semiconductor exports to China, China may respond by restricting imports of low-end semiconductors.

This implies that China has no reason to import low-performance semiconductors, such as those from NVIDIA if it cannot access high-performance chips.

By potentially blocking NVIDIA’s lower-spec chip exports, Chinese authorities could boost the competitiveness of domestic semiconductor firms, which currently lag behind NVIDIA in performance. This antitrust investigation is a tool to restrict NVIDIA’s exports of low-end semiconductors.

If importing NVIDIA’s high-performance chips for AI development becomes difficult, China may pressure the U.S. to ease its regulatory stance by threatening restrictions on lower-spec semiconductor exports.

NVIDIA, which has been developing new low-end semiconductors to circumvent U.S. regulations, could face significant setbacks from this antitrust probe.

Following the announcement of the investigation, NVIDIA’s stock price plunged $3.84 (2.69%) to $138.60 in afternoon trading on the New York Stock Exchange.

Hot this week

Trump’s Bold Move: Retirement Funds Can Now Flow into Bitcoin Investments

The Trump administration allows Bitcoin investments in pension accounts, reversing Biden-era restrictions, potentially benefiting the Trump family.

WTI and Brent Crude Climb on Renewed Supply Fears

Oil prices surged due to supply concerns and geopolitical tensions, despite OPEC+ plans to maintain production levels.

Nvidia Beats Expectations with AI-Driven Growth, Stock Rallies Post-Close

The New York stock market fell ahead of Nvidia's earnings, which later exceeded expectations, boosting investor confidence and tech stocks.

First Sale Rule Gains Renewed Traction Amid New U.S. Tariffs

As tariffs rise, companies are revisiting the First Sale Rule to lower import duties, despite its strict requirements and paperwork.

OPEC+ Meeting Spurs Market Caution, Drives Oil Prices Lower

Oil prices fell as OPEC+ plans to boost output, with Brent crude at $64.09 and WTI at $60.89 per barrel amid rising supply expectations.

Topics

Trump’s Bold Move: Retirement Funds Can Now Flow into Bitcoin Investments

The Trump administration allows Bitcoin investments in pension accounts, reversing Biden-era restrictions, potentially benefiting the Trump family.

WTI and Brent Crude Climb on Renewed Supply Fears

Oil prices surged due to supply concerns and geopolitical tensions, despite OPEC+ plans to maintain production levels.

Nvidia Beats Expectations with AI-Driven Growth, Stock Rallies Post-Close

The New York stock market fell ahead of Nvidia's earnings, which later exceeded expectations, boosting investor confidence and tech stocks.

First Sale Rule Gains Renewed Traction Amid New U.S. Tariffs

As tariffs rise, companies are revisiting the First Sale Rule to lower import duties, despite its strict requirements and paperwork.

OPEC+ Meeting Spurs Market Caution, Drives Oil Prices Lower

Oil prices fell as OPEC+ plans to boost output, with Brent crude at $64.09 and WTI at $60.89 per barrel amid rising supply expectations.

U.S. Markets Rebound Post-Holiday on Optimism Over U.S.–EU Trade

U.S. stock markets surged after tariff negotiations, with M7 tech companies leading gains, notably Tesla and Nvidia.

North Korea’s Mount Kumgang Poised for UNESCO World Heritage Status

North Korea's Mount Kumgang is recommended for UNESCO World Heritage listing, potentially becoming its third site by July.

Qualcomm Unveils Next-Gen DragonWing Tools for Embedded and Industrial IoT

Qualcomm hosted the IoT Partner & Tech Day, showcasing innovations in IoT, AI, and new products to strengthen partnerships in various sectors.

Related Articles