"China's State Administration for Market Regulation (SAMR) said, in a preliminary finding, that Nvidia had failed to fully comply with provisions it had imposed on the chipmaker in 2020 when the agency conditionally approved Nvidia's acquisition of Mellanox Technologies, an Israeli-U.S. networking equipment maker. The move is largely seen as a way for Chinese officials to signal their displeasure with Washington's restrictions on the export of cutting edge technology, including Nvidia's top-of-the-line AI chips, to China."
"The regulator began its antitrust probe of Nvidia's $6.9 billion acquisition of Mellanox in December, just days after the U.S. unveiled tougher export restrictions on high-bandwidth memory chips, which are important for AI applications, as well as chipmaking equipment. The move is also being viewed by analysts as a way for Beijing to gain additional leverage in trade talks happening this week between U.S. and Chinese diplomats in Madrid."
SAMR issued a preliminary finding that Nvidia did not fully comply with conditions imposed in 2020 when permitting Nvidia's acquisition of Mellanox Technologies. The antitrust probe into the $6.9 billion deal began in December, shortly after the U.S. announced tougher export controls on high-bandwidth memory chips and chipmaking equipment. Chinese regulators could fine Nvidia between 1% and 5% of its previous year's China sales and require changes to its business practices. Analysts view the action as a signal of Beijing's displeasure with U.S. export restrictions and as leverage in concurrent U.S.-China trade talks. Beijing also launched an anti-dumping probe into chips from U.S. firms.
Read at Fortune
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