An preliminary investigation by China’s State Administration for Market Regulation (SAMR) has determined that Nvidia violated the country’s anti-monopoly law. These findings could serve to further complicate the company’s business operations in China amid the ongoing trade talks in Madrid.
A statement by SAMR claimed Nvidia violated the country’s anti-monopoly law related to its acquisition of Mellanox Technologies in 2020. The agency stated it decided to conduct a further investigation into the Mellanox deal in accordance with the law.
Reuters reported US Treasury Secretary Scott Bessent stated the timing of SAMR’s finding may also have been an attempt to gain leverage during the trade discussions between the US and China which could include discussions on chip exports.
The news site explained the preliminary ruling also may have been in retaliation for the administration of US President Donald Trump putting 23 China-based companies on a trade blacklist last week.
Due to China’s antitrust law, the news site reported companies can be hit with fines of between 1 per cent and 10 per cent of their annual sales from the year prior.
The chipmaker expects revenue in the current quarter to grow by more than 50 per cent year-on-year to $54 billion despite the ongoing discussions between the two countries.
In August, Chinese authorities warned domestic companies to avoid buying Nvidia’s AI chips.
Nvidia CEO Jensen Huang made multiple visits to China this year to maintain market relations despite restrictions on advanced chip sales and has also met with Trump several times.
Last month, Nvidia and AMD reached an agreement with the US government to restart sales of their AI chips to China.
Source: Mobile World Live
Image Credit: Nvidia
