China’s State Administration for Market Regulation (SAMR) has launched an antitrust investigation into U.S. chipmaker Qualcomm over its acquisition of Israeli automotive chip company Autotalks, alleging that the American firm failed to properly declare certain details of the deal. The move marks the latest regulatory scrutiny of U.S. technology companies in China, with Qualcomm shares falling 1.2% in premarket trading following the announcement.
The San Diego-based semiconductor giant confirmed in June that it had completed the acquisition of Autotalks, which develops vehicle communication chips aimed at preventing road accidents. However, Qualcomm had earlier said in 2024 that it would abandon the bid after regulatory delays. Both Qualcomm and Autotalks have yet to comment on the Chinese investigation. The current probe echoes a 2015 case in which Qualcomm paid a $975 million fine to settle a previous Chinese antitrust dispute.
Analysts say the probe reflects Beijing’s intensifying oversight of U.S. chipmakers, following last month’s accusation that Nvidia violated China’s anti-monopoly laws. According to Equisights Research analyst Parth Talsania, the investigation heightens investor concerns amid rising geopolitical tension, particularly as Qualcomm earns 46% of its revenue from Chinese handset and automotive customers.
The renewed regulatory scrutiny could further strain China-U.S. trade relations, coming as both sides attempt to ease tensions following years of tariff battles. Observers note that the issue may surface when U.S. President Donald Trump and Chinese leader Xi Jinping meet later this month at the Asia-Pacific Economic Cooperation (APEC) summit in South Korea, where trade and technology disputes are expected to dominate discussions.