his Monday China stated that they launched an investigation into Nvidia due to alleged violations of the of anti-monopoly law encountered in their country.
The alleged monopoly held by Nvidia comes as the latest strike against Washington’s latest curbs on the Chinese chip sector.
Yet, the State Administration from the Market Regulation announced the probe but did not elaborate further on how the chip manufacturer could have violated China’s anti-monopoly laws, as Reuters reported.
Even more so, the U.S. chipmaker was also suspected of breaching communities it made at the time of the acquisition of the chip designer Mellanox Technologies, under those terms that outlined the conditional approval of the deal from 2020.
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This comes as the latest announcement in the trade happening between China and the US.
As an effect, Nvidia shares closed lower by 2.5% this Monday. A representative from Nvidia stated that in order to “provide the best products we can in every region and honor our commitments everywhere we do business," adding that "we are happy to answer any questions regulators may have about our business".
Technalysis Research chief analyst Bobb O’Donnell told Reuters that this probe is not very likely to have a big impact on the company as the chips are already forbidden from being sold in China.
He also stated, “It's clear that the Chinese government is trying to react against recent restrictions from the U.S., but their ability to impact the U.S. semiconductor industry continues to decrease over time”.
By
Alice Brasoveanu
•
December 10, 2024 4:00 PM
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