- China’s Market Regulator (SAMR) has launched a probe to nvidia
- It refers to violations of agreements concluded during the Mellanox acquisition
- Nvidia shares are down 2-3%, the company has not yet responded
China’s State Administration for Market Regulation (SAMR) has accused NVIDIA of violating an anti-monopoly and launching a preliminary probe to the US tech giant.
The violations claim that Nvidia has broken obligations in 2020 when acquired Mellanox technologies for $ 6.9 billion, but details of the violations have not been shared.
If found guilty, Nvidia could have a fine between 1% and 10% of its previous year’s sale in a market that is extremely important to it (accounting for about 13% of its total income last financial year).
Nvidia could be in trouble in china
The news comes as the US and China are preparing for trade negotiations in Madrid, with chips expected to be central to discussions. China has also launched a discrimination on US chip restrictions that question Tencent and city dancing over their NVIDIA H20 chip purchases.
“Recently, after a preliminary investigation, Nvidia violated the Antimonopoly Law of the People’s Republic of China and the announcement of the general administration of market surveillance on the anti-monopoly review on the approval of Nvidia’s acquisition of justice by Mylos Technology Co. Shared (translated).
Despite ongoing geopolitical tensions between China and the United States, NVIDIA Managing Director Jensen Huang has previously gone for continued chip sales to China, warning that Chinese companies like Huawei could fill the gap and cost the US billions in trading.
As a result, Nvidia has secured an agreement with the US government to resume sales to China at the expense of 15% of its revenue. China-specific H20 chips are still believed to be out of sale, but scaled-down blackwell chips could be approved. The company generated $ 17 billion in revenue from China alone last financial year.
NVIDIA shares fell 2-3% in trading before the market after the SAMR message. Techradar Pro have asked Nvidia for a comment, but we did not receive an immediate response.
