China has found Nvidia in violation of anti-monopoly laws over its 2020 acquisition of networking gear maker Mellanox Technologies, according to the State Administration for Market Regulation.

The Chinese regulator said it completed a preliminary investigation but did not specify possible remedies, and will continue to examine the US chipmaker.

Nvidia said it complies with all legal requirements and will cooperate with authorities.

This development comes as US and Chinese officials meet in Madrid for trade talks, and follows China’s recent launch of an antidumping probe into certain US-made semiconductors.

Nvidia’s shares fell nearly 2% before recovering most losses, while Texas Instruments, also named in the semiconductor probe, saw its stock drop 2.9%.

China approved Nvidia’s US$7 billion Mellanox deal in 2020 with conditions that it not discriminate against Chinese firms.

The US government has since restricted Nvidia from selling its most advanced AI chips to China, citing national security.

Negotiations in Madrid are ongoing and cover issues including trade, TikTok, and chip policy.

🔗 Source: Bloomberg

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