seniorspectrumnewspaper – China’s State Administration for Market Regulation (SAMR) has accused NVIDIA of violating national antitrust laws. The allegations stem from the company’s $6.9 billion acquisition of Israeli chipmaker Mellanox, completed in 2020. SAMR’s preliminary findings suggest NVIDIA breached both Chinese regulatory conditions and commitments it made during the merger approval process.
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SAMR launched the investigation in December and recently finalized its initial conclusions. However, it delayed public disclosure to align with the timing of ongoing US-China trade talks in Madrid. According to sources cited by the Financial Post, Chinese authorities sought to use the announcement as strategic leverage. These negotiations have already produced a framework deal on TikTok, highlighting the broader geopolitical backdrop.
When China approved the NVIDIA-Mellanox deal in April 2020, it imposed several conditions. These included a requirement that NVIDIA continue supplying China with GPUs and interconnect products. Regulators also demanded the company follow fair, reasonable, and non-discriminatory (FRAND) principles. The SAMR now claims NVIDIA has failed to meet those terms, though it has not yet issued penalties. The investigation remains active, and further actions could follow depending on its final outcome.
The case underscores the growing tensions between US technology firms and Chinese regulators. As China tightens its scrutiny of foreign tech influence, companies like NVIDIA face increasing regulatory and political challenges.
Geopolitical Tensions Fuel Regulatory Crackdown on US Chipmakers
The SAMR’s investigation arrives amid rising friction between China and the United States over access to advanced semiconductor technology. In recent months, China has reportedly discouraged local firms from purchasing NVIDIA’s H20 chips. These restrictions emerged while officials reviewed the product under national security protocols.
The situation escalated further after comments from US Commerce Secretary Howard Lutnick. Speaking to CNBC, Lutnick confirmed that while the US allowed NVIDIA to resume limited chip exports to China in July, the company would not offer its most advanced technology. He said the US strategy is to keep China reliant on older chips while preserving American technological advantages.
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“We don’t sell them our best stuff, not our second-best stuff, not even our third-best,” Lutnick told CNBC. “The fourth one down, we want to keep China using it.” He added that allowing limited access helps keep Chinese developers tied to US-made software and hardware systems. His remarks reportedly offended Chinese officials and fueled further scrutiny of NVIDIA’s operations.
NVIDIA and Mellanox first announced the acquisition in 2019, positioning the deal as a move to expand data center and AI capabilities. However, the ongoing investigation in China and the evolving export control landscape suggest that tech mergers involving US firms will face heightened global oversight. As trade negotiations continue, the outcome of this antitrust probe could influence future US-China technology exchanges and reshape the semiconductor industry’s regulatory environment.
