China launches anti-monopoly probe into Nvidia amid rising US-China chip tensions

“We are happy to answer any questions regulators may have about our business,” the company further added.

The investigation comes shortly after the US imposed fresh export restrictions on China’s semiconductor industry, targeting 140 companies and cutting off access to advanced chip technologies. In response, Beijing recently banned exports of critical minerals like gallium and germanium to the US, which are essential components in semiconductor manufacturing.

Chinese industry groups have also called on domestic firms to prioritize local chip suppliers, labeling US chips as “no longer safe” amid the increasing geopolitical friction.

Nvidia’s role in US-China chip battle

Nvidia, a dominant player in AI and gaming chips, has been significantly affected by the US-China chip war. Previous US export restrictions barred the company from selling its most advanced AI chips to China, leading Nvidia to create modified versions that were compliant with US controls.

Despite this, Nvidia maintained a commanding 90% share of China’s AI chip market before the curbs, although its revenues from the region have since declined from 26% to 17% in the past two years.

Competition from domestic players, including Huawei, has also increased, adding pressure on Nvidia in the Chinese market.