China opens antitrust probe into Qualcomm over its Autotalks deal

China’s State Administration for Market Regulation (SAMR) has launched an antitrust investigation into U.S. semiconductor giant Qualcomm over its acquisition of Israel’s Autotalks. The regulator said it would examine whether Qualcomm violated Chinese competition laws by failing to properly declare details of the transaction.

Following the announcement, Qualcomm shares dropped more than 5%, as U.S. President Donald Trump threatened new tariffs against China and hinted at cancelling a planned meeting with President Xi Jinping. The probe adds new pressure to both countries’ tech sectors amid an escalating rivalry in artificial intelligence and semiconductor technology.

Qualcomm completed its Autotalks deal in June, integrating the Israeli company’s V2X (vehicle-to-everything) communication technology into its Snapdragon car platform. Analysts suggest that Beijing’s move might go beyond a “no-harm” early filing penalty, signaling potential economic leverage on U.S. chip and auto supply chains.

The case follows China’s recent accusations against Nvidia for breaching anti-monopoly rules. With 46% of Qualcomm’s 2024 fiscal revenue coming from Chinese customers, analysts warn the investigation could intensify investor concerns about geopolitical and regulatory risks in the semiconductor industry.