China examines Nvidia in the escalating chip war with the USA

China examines Nvidia in the escalating chip war with the USA

China has initiated an antitrust examination against the American chip manufacturer Nvidia. NVIDIA is the world's largest provider of processors who drive artificial intelligence. According to reports of state media in China, this step is part of the growing argument between the USA and China for dominance in the field of AI, which both countries consider crucial for their national security.

examination of the Nvidia-Mergers

in a report by China Central Television has been reported that the Chinese government is of the opinion that Nvidia's takeover of the Israeli network provider Mellanox may violate the country's antimonopolitan laws. However, the report did not specify how the merger may have violated the law. It is important to note that China approved the takeover in 2020.

market development and share prices

nvidia's stocks fell by less than 2 %on Monday in excessive trading. The company is one of the most popular shares on the market and has gained almost 200 % of value this year because the boom in artificial intelligence heats up the demand for the company's chips. With a market rating of over $ 3 trillion, Nvidia is only behind Apple.

new phase in the Chip War

The intensifying chip war between China and the USA has reached a new phase this month after the bid administration has another round of restrictions for Sales of Hochmodern memory chips has imposed to China. However, these memory chips differ from the graphics processors that produce NVIDIA are also decisive technologies that are needed to support AI.

export controls and the reaction of Chinas

The new export controls of the US administration are the third round of sales restrictions for chips to China. The United States fears that China could use AI to gain a military advantage. Officials of the US Ministry of Trade believe that the restrictions will slow down the development of AI chips in China-and experts believe that this plan of the US government will have an effect.

China's answer to the restrictions

The Chinese Ministry of Commerce has sharply criticized the new US restrictions and explained that they would be “a significant threat” for the stability of global supply chains. In a counter reaction prohibited China last week that is essential for the production of the chips are, including Germanium and gallium.

suspicion of industrial espionage

a year ago, China had restricted the sale of these materials, but created loopholes that further enabled some sales. These necessary exceptions have now been closed. High US officials have also accused China of stealing American AI software, which Beijing denies.

antitrust operation and market strategy

The examination of Nvidia continues to put the situation under pressure. The company is the flagship of the AI ​​technology revolution, and a weakening of Nvidia could endanger the ambitions of the company to advance AI technology worldwide. In addition, Nvidia also stands in the USA under antitrust observation, as from Bloomberg was reported.

Promotion of domestic chip production

Both China and the USA pursue the goal of expanding their own developments and production capacities for microprocessors in the country. As part of the Chips Act, the bidding government has invested billions of dollars in Intel and other companies to increase the national production of chips and reduce the dependence on China and other foreign countries. At the same time, China announced in May that it was his largest state investment fund for semiconductor in Height of $ 47.5 billion wants to set up , funded by investing six of six of the country's largest state banks.

This story has been updated with further developments and context.