Beijing Targets Nvidia After US Issues New Chips Restrictions

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Nvidia said it would be happy to answer any questions that regulators have about the company.

The Chinese communist regimeโ€™s State Administration for Market Regulation announced on Dec. 9 that it had launched a probe of technology company Nvidia Corp over suspected violations of Chinaโ€™s anti-monopoly law.

Chinese state media reported that the investigation is focused on Nvidiaโ€™s acquisition of Israeliโ€“American chip designer Mellanox Technologies, which China approved four years ago on the condition that Nvidia does not discriminate against Chinese companies.

The announcement of the probe follows the United Statesโ€™ issuing of another round of export controls on advanced semiconductor technology targeting China, banning sales to 140 new entities.

The following day, Beijing banned the export of critical minerals used in semiconductor manufacturing to the United States.

Four Chinese industry associations also warned companies the same day that U.S. chips were โ€œno longer safeโ€œ to buy. The Internet Society of China urged companies to expand cooperation with chip companies from other countries and prioritize using Chinese-made chips.

Nvidia is by far the worldโ€™s most dominant artificial intelligence (AI) chips company, but chip export bans to China have allowed Chinese chipmakers to establish a foothold in the domestic market.

Huawei has announced an advanced AI chip in an attempt to rival Nvidiaโ€™s offerings and plans to start mass-producing them as early as 2025.

U.S. export controls only restrict advanced chips from being sold to Chinese entities. Many chipmakers continue to sell larger โ€œlegacyโ€ chips to Chinese manufacturers.

A spokesperson for Nvidia told The Epoch Times that the company would be happy to answer any questions that regulators may have about the company.

โ€œNvidia wins on merit, as reflected in our benchmark results and value to customers, and customers can choose whatever solution is best for them,โ€ the spokesperson said. โ€œWe work hard to provide the best products we can in every region and honor our commitments everywhere we do business.โ€

China remains a key client for many chipmakers, including Nvidia. The AI chip designer has designed chips specifically to sell to China.

Byย Catherine Yang

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