China’s State Administration of Market Regualtion (SAMR) said that Qualcomm is suspected of violating the country’s anti-monopoly law in regards to its acquisition of Israeli firm Autotalk.
At the end of last week,Chinese regulators said they would investigate the American tech giant’s acquisition of chip firm Autotalks.The acquisition officially closed in June, just over two years after it was first announced.
In a brief statement, China’s State Administration for Market Regulation (SAMR) noted that it would initiate a review of the terms of the deal. The U.S. chipmaker said in a statement that it is fully cooperating with SAMR. Qualcomm sells its smartphone chips to some of the biggest players in China, such as Xiaomi.
On Sunday, October 12, a spokesperson for SAMR told reporters that the investigation into Qualcomm is part of the agency’s standard enforcement practices and complies with antitrust regulations.
According to the regulator, Qualcomm failed to declare the concentration of undertakings in accordance with the law.
The spokesperson explained in an official statement on Sunday that in May 2023, Qualcomm announced its acquisition of Autotalks. After receiving a tip-off, the SAMR conducted a comprehensive review of the transaction and determined that, although it fell below the mandatory filing threshold, there was evidence that it could have - or was likely to have - an anticompetitive effect of excluding or restricting competition, per an official statement by the SAMR.
In March 2024, SAMR instructed Qualcomm to file for the merger clearance and to suspend any implementation until the filing was submitted or approved. In response, Qualcomm informed SAMR that it was dropping the deal, said the statement. However, in June 2025, went ahead and completed the acquisition of Autotalks without making any filing or engaging in any communication with the Chinese regulator.
"Following the tip-off, we verified the details, and Qualcomm acknowledged the facts. With the facts clear and the evidence solid, we have launched a formal investigation into Qualcomm's unlawful implementation of this merger without prior approval,"
the SAMR official said.
As noted by the Chinese state-run news outlet Global Times, Qualcomm, fully aware of the risks, still pushed ahead with the deal in violation of the rules, a move that not only justifies a formal probe but also signals a “clear lack of respect for Chinese law.”
Autotalks is a fabless semiconductor company founded in 2008, specializing in V2X communications. It pioneered the industry's first purpose-built V2X chipset and has continued to lead the industry with innovative, cutting-edge V2X solutions, according to Qualcomm's official website.
Experts consider this acquisition a clear milestone in Qualcomm's transition from consumer electronics into the smart automotive space, and he noted that the ongoing antitrust probe against Qualcomm will have a direct bearing on its automotive ambitions.
"Moving forward, the SAMR will continue to advance the probe in line with the law, maintaining objectivity and fairness throughout the process,"
the regulator's statement said.
The investigation into Qualcomm is heightening tensions between Beijing and Washington ahead of the anticipated meeting of the two countries' leaders at the APEC summit in late October in Gyeongju, South Korea. Previously, SAMR raised similar concerns against another American tech company, Nvidia, over its acquisition of Israeli firm Mellanox.
Sources: Global Times, CNBC
