The State Administration for Market Regulation in China has initiated an investigation into Nvidia, accusing the company of anti-monopoly infractions related to its $6.9 billion purchase of Mellanox Technologies back in 2020.
Nvidia's Acquisition Journey
Nvidia revealed its plans to acquire the Israeli network product supplier in 2019, successfully completing the acquisition in 2020 after receiving the green light from antitrust regulators in the US, EU, and China. China gave its approval with a stipulation that Nvidia would treat Chinese companies fairly and without bias.
Regulatory Requirements
According to a report from Bloomberg, China required Nvidia to share details about new Mellanox products within 90 days after they became accessible to Nvidia itself.
The US has enforced export bans on more than 140 Chinese firms for various components, including GPUs, lithography machines, and CPU design software. In retaliation, the Chinese government has taken measures such as banning Apple iPhones in government agencies and prohibiting the use of AMD and Intel processors in servers operated by state entities.
Recent Developments
Earlier this month, in response to additional US sanctions, China decided to halt exports of critical materials essential for microchip manufacturing to the US.
A representative from Nvidia informed Bloomberg that the company would be "glad to respond to any inquiries regulators may have regarding our operations." The representative emphasized that Nvidia strives to deliver the finest products possible in all markets while keeping its commitments intact in every location where it operates.
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