China Escalates Antitrust Probe Into Nvidia Over Mellanox Deal

China’s State Administration for Market Regulation (SAMR) has opened a formal antitrust investigation into Nvidia. It accuses the U.S. chipmaker of violating the country’s Anti-Monopoly Law and breaching conditions tied to its $6.9 billion acquisition of Mellanox Technologies in 2020. 

In a statement released Monday, SAMR said its preliminary review indicated Nvidia failed to comply with commitments designed to ensure fair competition. Those conditions were intended to prevent Nvidia from using Mellanox’s networking technologies. The purpose is to disadvantage Chinese rivals and to maintain interoperability with other vendors’ products. The escalation to a full probe could result in fines or new operational restrictions. 

The regulator did not specify Nvidia’s alleged infractions. However, the move underscores growing regulatory and geopolitical pressures on the company. It has already faced multiple hurdles in China this year. 

Key developments include: 

• Regulatory escalation: SAMR’s investigation follows a conditional approval granted in 2020, now under review for compliance breaches. 

• Market impact: Nvidia shares fell around 2% in pre-market trading after the announcement. 

• Security concerns: In July, Chinese officials raised alarms over “serious security vulnerabilities” in Nvidia’s H20 AI accelerators, chips designed for China after U.S. export restrictions tightened in 2023. 

• Revenue exposure: China accounted for roughly $17 billion in Nvidia sales last fiscal year, around 13% of its global revenue. 

The investigation further complicates Nvidia’s position in one of its largest markets. Where it is already forced to sell downgraded GPUs due to U.S. export controls. Analysts warn that any fines or operational curbs could heighten risks for Nvidia’s long-term growth in China, as Beijing balances domestic industry protection with international tech tensions. 

 

Source: 

https://www.theregister.com/2025/09/15/china_nvidia_antitrust/