It becomes more delicate for technological companies – even as essential for the BOOM of AI than NVIDIA – to navigate in the American -Chinese relationship.
Chinese state media reported On Monday, that state administration for market regulation (SAMR), the Chinese market regulator, had launched an investigation into NVIDIA, alleging that the acquisition by the manufacturer of American chips of Mellanox Technologies, an Israeli manufacturer of computer networking products, may have violated monopoly regulations.
Nvidia’s shares dropped approximately 2.5% in US trade on Monday, erasing about $ 89 billion in market value. They have more than 180% over a year.
China approved The acquisition of Mellanox from Nvidia of $ 6.9 billion in April 2020, but only under the condition that the two companies continue to provide GPUs and network equipment to Chinese customers.
Under the anti-monopoly law of China, companies having a major presence in China must obtain approval of the SAMR for any merger and acquisitions, even if neither the buyer nor the acquisition objective are Chinese.
SAMR decisions are weight. Last year, Intel abandoned its plans to acquire a semiconductor of the Israeli foundry tower when the American company failed To obtain the approval of Chinese regulators – even after the CEO, Pat Gelsinger, then, paid a personal visit to a lobby for the agreement.
From now on, Nvidia’s pressures could be the new tactic of Beijing to guarantee its position before Donald Trump’s return to the White House next year, which should bring an escalation of export controls and other measures targeting the China technological sector.
“I think Beijing is trying to collect negotiation schools before Trump enters the White House,” said Linghao Bao, principal analyst of the Consulting Company Trivium China. “They are preparing for difficult negotiations to come.”
In a declaration at Fortune, A spokesperson for Nvidia said that the company “gained merit”, as evidenced by its reference results and its value for customers.
“Customers can choose the solution that suits them best. We work hard to provide the best products we can in each region and honor our commitments wherever we do business. We are happy to answer all the questions that regulators can have on our business, “added the spokesperson.
The first Trump administration targeted companies like Huawei and Semiconductor Manufacturing International Corp. (Minimum wage), which is responsible for buying American manufacturing technologies. The Biden administration widened these checks in 2022 to more broadly limit flea sales to China.
Nvidia in particular was the target of American restrictions, since its GPUs are essential to develop and train the latest AI models. The flea manufacturer has tried to develop new processors for the Chinese market that comply with American regulations, only for Washington to change its rules, forcing Nvidia to make new modifications to its products. In July, Reuters reported that Nvidia was trying to create a version made for Chinese from her Blackwell Series chip which complies with American rules.
Washington last week revealed New restrictions on the sale of large -band memory tokens in China, whether made by American or non -American companies.
Beijing replied By prohibiting exports to the United States of gallium, Germanium, antimony and other key metals to make semiconductors.
Several industrial associations supported by the Chinese state, representing more than 6,000 companies in sectors such as automotive manufacturing and semiconductors, have called on companies to buy locally manufactured fleas, alleging that the American fleas were no longer in security. (Associations have not provided details.)
There is a precedent for such a decision: last year Beijing rod The operators of the key infrastructure of the purchase of products from the memory of American memory Micron after its cyberspace regulator said that Micron products had serious network security risks following an exam.
Despite the American checks, China remains an important market for flea manufacturers.
“Companies will always try to develop their markets as long as they are allowed to do so,” said Bao de Trivium China.
Before Washington restrictions, China has represented about a quarter of Nvidia’s income, but since it has dropped, the Chinese market accounts For around 12% of sales of the American technological company.
The CEO of Nvidia, Jensen Huang, said At the end of November, which his company benefited from being in China. Speaking during a ceremony in Hong Kong where he obtained an honorary doctorate in engineering from the Hong Kong University of Science and Technology, Huang added that global science and research cooperation must be protected.
In January of this year, Huang do A discreet visit to China also and visited offices in Shanghai, Shenzhen and Beijing.
In addition to NVIDIA, China also represented around 15% of income from the Société de Puces American AMD and 27% for Intel.
Nvidia is now potentially in hot water on both sides of the Pacific. In early September, Bloomberg reported That the United States Ministry of Justice has assigned NVIDIA on its domination of the AI market, including the allegations that the flea manufacturer makes more difficult for suppliers to switch to other chips. (Nvidia, at the time, said that she “gained merit”.)
Even equipment manufacturers such as the ASML in the Netherlands and the Japanese Tokyo Electron are found in a link. Washington has long been pressure for manufacturers of flea control equipment in Allied countries in order to further restrict sales and services to China, even if the Chinese market represents a large part of their income.
CEO of ASML Christophe Fouquet said In October, he expects the United States will probably continue to apply pressure on the allies because it seeks to contain access from China to advanced fleas. Much of global theater manufacturing technology is linked to American companies or companies that use American technology, which gives Washington Lever to apply the pressure.
Correction, December 10, 2024: an earlier version of this article has poorly calculated the modification of NVIDIA’s market value.
