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China Opens Antitrust Investigation Into Qualcomm’s Autotalks Deal

By  |  October 12, 2025

Qualcomm shares dropped 4% on Friday following news that Chinese regulators will investigate the U.S. semiconductor company’s acquisition of Autotalks, an Israeli firm specializing in vehicle communication chips. According to CNBC, China’s State Administration of Market Regulation (SAMR) announced that Qualcomm may have violated the nation’s anti-monopoly laws in connection with the acquisition, which officially closed in June after being first announced more than two years ago.

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    Per CNBC, the SAMR issued a brief statement confirming that it has launched a formal investigation into the matter. Qualcomm responded that it is fully cooperating with the inquiry and “is committed to supporting the development and growth of our customers and partners.”

    The move comes amid intensifying scrutiny of U.S. tech companies operating in China, as regulators in Beijing take a firmer stance ahead of expected meetings between U.S. and Chinese leaders later this month. Qualcomm, which supplies smartphone chips to major Chinese manufacturers such as Xiaomi, is the latest American firm to face regulatory pressure in China.

    Related: Qualcomm Faces £480 Million UK Lawsuit Over Smartphone Chips

    In a similar case earlier this year, the SAMR accused Nvidia of breaching antitrust rules related to its acquisition of Mellanox, CNBC reported. Beijing has also reportedly urged domestic companies to reduce reliance on Nvidia’s products. The series of enforcement actions highlight growing technological and geopolitical tensions between the two countries.

    China has recently tightened export controls on rare earth elements and related technologies, which are essential to industries such as defense, electric vehicles, and semiconductors. These developments come as both nations prepare for high-level talks. According to CNBC, U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet on the sidelines of the Asia-Pacific Economic Cooperation forum in Gyeongju, South Korea, during the final week of October.

    Source: CNBC