Chinese regulators are investigating Qualcomm's acquisition of Autotalks
China's antitrust regulator has opened an investigation into Qualcomm's acquisition of Israeli connected-vehicle chip company Autotalks. The State Administration for Market Regulation (SAMR) alleges that Qualcomm is suspected of violating China's anti-monopoly laws by not disclosing certain details of the deal.
Qualcomm had initially agreed to acquire the fabless chip company in 2023 to expand its Snapdragon portfolio into more automotive applications. Autotalks creates chips, sensors and vehicle-to-everything (V2X) communication tech centered in part on safety for vehicles. It has been a few months since the acquisition was finalized, with the new probe coming amid trade negotiations between the United States and China.
The deal was previously investigated by both the US Federal Trade Commission and the UK's Competition and Markets Authority, with Qualcomm temporarily abandoning the acquisition in early 2024. The exact process of how the deal was reopened is not clear, as the acquisition was only announced once it had been finalized and received regulatory approval
Last month, SAMR said that NVIDIA's $6.9 billion acquisition of Mellanox also ran afoul of national regulations. The regulators also said the deal violated conditional terms outlined by regulators on initial approval. The Financial Times reported that China's regulators held on to that decision for months, purportedly to gain leverage in trade discussions with the US.
The bulk of these investigations have come while the US and China are engaged in negotiations around a TikTok deal, tariffs, trade and more. Today China drastically expanded its export controls for rare earth minerals, targeting defense and semiconductor companies outside the country.This article originally appeared on Engadget at https://www.engadget.com/big-tech/chinese-regulators-are-investigating-qualcomms-acquisition-of-autotalks-121540269.html?src=rss