Nvidia said it would be free to answer any questions from regulators regarding the company.
The Chinese Communist regime’s Status Management for Marketplace Law announced on December 9 that it had announced an investigation into generation company Nvidia Corp over suspected violations of China’s anti-monopoly law.
Chinese state media reported that the investigation is looking into Nvidia’s acquisition of Israeli-American chip fashion designer Mellanox Technologies, which China licensed four years ago on the condition that Nvidia no longer discriminate against Chinese companies.
The announcement of the investigation comes after the United States issued another round of export controls on complex semiconductor production focused on China, banning the sales of 140 untested entities.
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Huawei has announced an advanced AI chip in an effort to rival Nvidia’s offerings and plans to begin mass production of these as early as 2025.
US export controls only prevent advanced chips from being sold to Chinese entities. Many chip makers continue to sell large “legacy” chips to Chinese manufacturers.
An Nvidia spokesperson told The Epoch Times that the company would be free to answer any questions regulators have regarding the company.
“Nvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose the best solution for themselves,” the spokesperson said. “We work hard to provide the best products in every region and honor our commitments wherever we do business.”
The US export control law on chips to China in 2023 outlaws gross sales of chips with a certain amount of processing energy. Nvidia had said it could follow two of its most complex chips.
The Chinese market accounted for 26 percent of the company’s revenue in fiscal year 2022, which fell to 17 percent two years after the sanctions.
On generation, US Trade Secretary Gina Raimondo said the barriers were not for economic but strategic reasons. The aim, he said, was to limit breakthroughs in complex technology like AI that are vital to Chinese military systems.
In the first round of sanctions, officials noted that Chinese entities had a record of avoiding US sanctions to receive the cancellation period.
Beijing has previously taken concessions from major companies facing anti-trust investigations.
In 2015, Qualcomm paid a record $975 million fine to the Chinese Communist regime under China’s anti-monopoly law following a 14-month investigation.
Qualcomm acknowledged the findings did not match the Chinese language company’s findings, but said, “We do not believe it is likely that other agencies will necessarily reach similar conclusions.”
Chinese-language businesses said Qualcomm’s practices “strained innovation.” Besides profits, Qualcomm has agreed to reduce royalty rates for Chinese chipmakers like Xiaomi and Huawei, basing rates on 65 percent of the phone’s selling price instead of wholesale pricing.
Reuters contributed to this file.
