Today, China’s State Administration for Market Regulation announced it will conduct a further investigation into Nvidia after a preliminary probe found that the U.S. chip giant violated China’s anti-monopoly law.
This announcement comes as the U.S. and China hold their fourth round of trade talks in Madrid.
Chinese authorities claim the U.S. chipmaker is suspected of violating commitments during its acquisition of Israel chip designer Mellanox Technologies.
China launched an investigation into the deal in December over what it said were suspected violations of the country’s anti-monopoly law. Beijing approved the $7 billion acquisition four years ago, on the condition that Nvidia not discriminate against Chinese companies.
China also announced it was initiating an anti-dumping investigation targeting a type of semiconductor produced by US companies, including Texas Instruments Inc.
Nvidia has not yet publicly commented on the situation.
Following the announcement, Nvidia shares fell 2% in pre-market trading today.
By CEO NA Editorial Staff