American chip manufacturer Qualcomm was accused by China’s State Administration for Market Regulation of failing to report to the Chinese authorities in compliance with regulations when it completed its acquisition of Autotalks, an Israeli car netwo...
American chip manufacturer Qualcomm was accused by China’s State Administration for Market Regulation of failing to report to the Chinese authorities in compliance with regulations when it completed its acquisition of Autotalks, an Israeli car networking chip company.
According to Reuters, the State Administration for Market Regulation stated that it had notified Qualcomm in March that the transaction required approval. However, Qualcomm said it would no longer proceed, but still completed the acquisition in June. Chinese officials noted that Qualcomm had acknowledged the facts, prompting Beijing to formally launch an antitrust investigation in October.
Autotalks was founded in 2008. It is a fabless semiconductor company that focuses on V2X (Vehicle-to-Everything) vehicle networking communication chips. Its technology enables vehicles to instantly connect with pedestrians, road infrastructure and other vehicles to reduce the risk of traffic accidents and support self-driving systems.
Qualcomm announced the completion of the merger and acquisition in June this year and integrated Autotalks into its Snapdragon Digital Chassis automotive platform to strengthen its layout in the fields of self-driving and smart transportation. However, Chinese regulatory agencies believe that the transaction involves competition in the Chinese market and should be declared in advance according to law. The current investigation will focus on whether Qualcomm violated the Anti-Monopoly Law.
This incident is also regarded as another case of Sino-US trade tensions. With the Trump administration recently threatening to increase tariffs on China again, and China also launching a counterattack by strengthening rare earth export controls, the global technology industry is once again facing warnings of policy and supply chain risks.
However, Trump’s recent statements on social media have softened, indicating that the two sides may still retain space for negotiations. But the situation is still full of variables, and the final outcome remains to be seen.
China says Qualcomm admitted to acquiring Autotalks without informing regulator
