BUSINESS

China Escalates Antitrust Scrutiny of Nvidia Over Mellanox Deal

Published: Sep. 16, 2025 3:45 a.m. GMT+8

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Nvidia shares slipped more than 2% in U.S. premarket trading following the announcement

Chinese regulators have accused Nvidia Corp. of breaching the country’s antitrust laws after a preliminary review of its 2020 acquisition of Mellanox Technologies Ltd., escalating a case that could result in significant financial penalties for the U.S. chip giant.

The State Administration for Market Regulation (SAMR) said Monday that Nvidia failed to comply with conditions imposed when Beijing conditionally approved the $6.9 billion purchase of Mellanox, an Israel-U.S. supplier of high-speed networking equipment.

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Chinese regulators accuse Nvidia of breaching antitrust laws over its $6.9 billion 2020 Mellanox acquisition, citing non-compliance with imposed conditions.
Nvidia may face fines up to 10% of its China revenue ($578.5 million), or up to $2.9 billion if violations are “particularly serious.”
China is also conducting a cybersecurity review of Nvidia’s H20 AI chips amid broader regulatory scrutiny.

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Who’s Who

Nvidia Corp.: Chinese regulators have accused Nvidia Corp. of breaching antitrust laws regarding its 2020 acquisition of Mellanox Technologies Ltd. The State Administration for Market Regulation (SAMR) is investigating suspected violations, which could result in significant financial penalties, potentially up to $2.9 billion. Additionally, Nvidia's H20 AI chips are facing a cybersecurity review by the Cyberspace Administration of China.

Mellanox Technologies Ltd.: Mellanox Technologies Ltd. is an Israel-U.S. supplier of high-speed networking equipment. Nvidia acquired Mellanox in 2020 for $6.9 billion. Chinese regulators, specifically SAMR, are investigating Nvidia for allegedly breaching antitrust laws by failing to comply with conditions imposed during the conditional approval of the Mellanox acquisition.

Qualcomm Inc.: Qualcomm Inc. was cited in a 2015 case where the company was fined based on its sales in China. This example was used to illustrate how fines for anti-monopoly violations in China might be calculated.

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What Happened When

2020：: China granted conditional approval for Nvidia's $6.9 billion acquisition of Mellanox Technologies.

As of 2022：: China’s amended Anti-Monopoly Law became effective, allowing fines up to 10% of the previous year's revenue for such violations.

2023：: Nvidia's fiscal-year revenue from China (including Hong Kong) was $5.8 billion.

2024：: In response to the initial probe, Nvidia told Caixin that it 'competes on merit.'

By Dec. 9, 2024：: SAMR launched an antitrust investigation into Nvidia's compliance with merger conditions regarding the Mellanox acquisition.

July 31, 2025：: Cyberspace Administration of China summoned Nvidia over potential national security risks tied to its H20 AI chip series.

September 15, 2025：: SAMR accused Nvidia of breaching antitrust laws after a preliminary review and announced a further investigation; Nvidia shares dropped more than 2% in U.S. premarket trading.

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