China investigating the Qualcomm American chip giant
The move adds to U.S.–China technology and trade tensions at a sensitive diplomatic moment, increasing uncertainty for cross-border semiconductor and automotive supply chains.
China’s State Administration for Market Regulation (SAMR) has opened an antitrust investigation into Qualcomm’s acquisition of Israeli automotive chipmaker Autotalks, citing suspected violations of China’s Anti-Monopoly Law tied to the transaction’s notification/disclosure requirements. The case focuses on whether Qualcomm failed to properly file the Autotalks deal under China’s merger-control rules.
What regulators allege
SAMR says Qualcomm is suspected of breaching China’s Anti-Monopoly Law in connection with the Autotalks takeover, specifically around required merger filings and prior-approval obligations.
The investigation centers on compliance with China’s concentration-of-undertakings notification regime for the Autotalks transaction.
Qualcomm first announced plans to buy Autotalks in 2023 and completed the acquisition in June 2024, integrating V2X technology into its automotive platform.
Autotalks develops vehicle-to-everything (V2X) communication solutions aimed at improving road safety and connected mobility.
Reporting indicates the deal faced earlier regulatory scrutiny in multiple jurisdictions, with Qualcomm at one point pausing the transaction before ultimately closing it with approvals in mid-2024.
Penalties and market impact
If SAMR finds only a failure-to-file, administrative fines up to 5 million yuan are possible; if the deal is found to restrict competition, penalties can be much higher—potentially up to 10% of the firm’s prior-year sales in the relevant market.
Qualcomm shares fell roughly 3–7% after the probe was disclosed, reflecting investor concern over regulatory and geopolitical risk.
The probe comes amid heightened scrutiny of U.S. tech firms in China, with recent actions also targeting other chip companies like Nvidia under China’s anti-monopoly framework.