China Says Preliminary Probe Found Nvidia Violated Antimonopoly Laws

Chinese regulators said Monday that a preliminary investigation found Nvidia Corp. violated the country’s anti‑monopoly laws and that further scrutiny would be carried out into the company’s business practices.

The State Administration for Market Regulation said in a one‑sentence statement that the probe centered on Nvidia’s purchase of network and data transmission company Mellanox Technologies. Regulators said last year they were investigating suspected violations stemming from the $6.9 billion acquisition completed in 2019. Nvidia did not immediately respond to a request for comment.

The announcement from the State Administration for Market Regulation, known as SAMR, marks a notable escalation in Beijing’s scrutiny of foreign chipmakers and comes amid high‑stakes trade and security negotiations between the United States and China. Chinese authorities opened the initial investigation into the Mellanox deal last year as part of a broader review of technology sector transactions.

The development coincides with a round of talks in Madrid between senior U.S. and Chinese officials focused on tariffs and national security issues. U.S. Treasury Secretary Scott Bessent was scheduled to meet Chinese Vice Premier He Lifeng as part of discussions running Sunday through Wednesday. The Madrid meetings are the fourth round of direct exchanges following talks in London, Geneva and Stockholm; the two sides have used a series of 90‑day pauses to defer reciprocal tariff increases.

Beijing has recently intensified oversight of the U.S. chip industry. On Saturday, China’s Ministry of Commerce announced an anti‑dumping probe into certain analog integrated circuits imported from the United States, citing commodity chips commonly produced by companies such as Texas Instruments and ON Semiconductor. The ministry said the investigation would examine whether U.S. firms were selling those chips in China at below‑market prices.

Nvidia, a U.S.‑based designer of graphics processors and artificial intelligence chips, has become a central supplier to data centers and AI developers worldwide. The company’s 2019 acquisition of Mellanox, which supplies high‑speed networking gear and interconnects used in data centers, was intended to broaden Nvidia’s reach into data center networking.

Analysts and industry participants have said regulatory reviews in China can carry significant commercial implications for foreign firms operating in one of the world’s largest technology markets, potentially affecting product approvals, market access and local partnerships. Authorities in China have in recent years strengthened enforcement of competition and trade rules, citing the need to protect domestic market order and national security.

The SAMR statement did not provide further details on the alleged violations or a timetable for the follow‑up investigation. It also did not specify potential penalties. Previous antitrust enforcement actions in China have included fines, orders to change business practices and mandates to divest assets in some cases.

The matter adds to a growing list of regulatory challenges facing global semiconductor companies as geopolitical tensions and industrial policy priorities shape trade and market access between the United States and China. Officials from both countries have emphasized dialogue in recent negotiations, while continuing to press national security and economic policy concerns at home.

This report draws on the preliminary SAMR statement and related government announcements regarding trade and industrial probes. Further developments are likely as SAMR proceeds with the investigation and as U.S.‑China talks continue in Madrid.