China’s antimonopoly regulator has launched an investigation into Nvidia, a US-based chipmaker, for potential antitrust law violations. The move is part of Beijing’s efforts to challenge US dominance in the global semiconductor market and secure access to advanced technology.
The inquiry comes as tensions between China and the US over trade and technology are escalating. Last week, the Biden administration tightened curbs on the sale of advanced American technology to China, while China responded by banning exports of rare minerals and imposing sanctions on US defense firms.
Nvidia’s dominance in the AI chip market has made it a key target for Chinese regulators. The company controls 90% of global sales, making it one of the most valuable companies in the world. However, its dominance has also raised concerns among competitors and customers about Nvidia’s power to allocate scarce technology.
China’s State Administration for Market Regulation has investigated Nvidia for violating commitments made during its acquisition of Mellanox Technologies. The company has responded by offering less powerful versions of its chips to China.
The US government is also taking action against Nvidia, with the Justice Department investigating the company’s sales practices and acquisitions. The Biden administration is considering new rules that could impose requirements on companies shipping advanced AI chips to China.
The Chinese government’s antitrust investigation of Nvidia marks a new front in Beijing’s efforts to challenge US dominance in the global semiconductor market. As tensions between the two nations continue to rise, the fate of Nvidia and other US chipmakers remains uncertain.
Source: https://www.nytimes.com/2024/12/09/technology/china-nvidia-investigation-antitrust-ai.html