U.S. Semiconductor Behemoth Qualcomm Faces Antitrust Investigation in China
China’s State Administration for Market Regulation (SAMR) has initiated an antitrust probe into U.S. semiconductor titan Qualcomm concerning its acquisition of Israeli firm Autotalks. This move escalates the tech tensions between Washington and Beijing, coming ahead of the scheduled meetings between President Trump and Chinese leader Xi Jinping.
The investigation focuses on Qualcomm’s acquisition of Autotalks in June 2025. Autotalks is renowned for its specialization in vehicle-to-everything (V2X) communication chips, which are designed to prevent car crashes. Chinese regulators have accused Qualcomm of violating the country’s anti-monopoly law. They claim that Qualcomm failed to properly declare certain aspects of the transaction in line with the required merger notification procedures.
Following the announcement, Qualcomm shares dropped by 4%, reflecting investor apprehension about the company’s substantial exposure to the Chinese market. The San Diego-based chipmaker supplies smartphone processors to major Chinese manufacturers such as Xiaomi and heavily relies on Chinese manufacturing partners for its global operations.
This investigation is the latest in a series of Chinese regulatory actions aimed at major U.S. technology companies. In September, SAMR accused Nvidia of violating anti-monopoly laws in relation to its Mellanox acquisition. Similar probes have been initiated against Google and Intel amidst broader trade tensions.
The timing of the probe is particularly noteworthy as it comes just weeks before Trump and Xi are expected to meet at the Asia-Pacific Economic Cooperation summit in South Korea. It is anticipated that technology trade and semiconductor access will be key discussion points at the summit.
Source: CNBC