China Opens Antitrust Probe Into Qualcomm Over Israeli Chip Deal
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Qualcomm generated $17.8 billion in China in fiscal 2024 — 46% of its total revenue
China’s top market regulator has launched an antitrust investigation into U.S. semiconductor heavyweight Qualcomm Inc. over its acquisition of Autotalks Ltd., an Israeli automotive chip manufacturer, alleging that the deal was not properly declared.
The State Administration for Market Regulation (SAMR) said on Friday Qualcomm may have violated China’s Anti-Monopoly Law by failing to report the transaction under rules requiring a review of significant mergers, known as “concentration of undertakings.”
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- China’s market regulator is investigating Qualcomm over its acquisition of Israeli chipmaker Autotalks, alleging the deal was not properly declared under antitrust rules.
- Qualcomm, which made $17.8 billion in China in 2024 (46% of revenue), could face a penalty up to $1.8 billion; its shares dropped 2.9% after the probe announcement.
- The case is part of broader Chinese scrutiny of U.S. tech firms, with Nvidia and others also under antitrust review.
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Who’s Who
- Qualcomm Inc.
- Qualcomm Inc. is a U.S. semiconductor heavyweight currently facing an antitrust investigation by China's top market regulator. The probe concerns its acquisition of Autotalks Ltd., an Israeli automotive chip manufacturer, and alleges a failure to properly declare the deal. This adds to Qualcomm's history of regulatory issues in China, its largest market. The investigation carries significant financial risk, with potential penalties up to 10% of its previous year's sales in China.
- Autotalks Ltd.
- Autotalks Ltd. is an Israeli automotive chip manufacturer specializing in vehicle-to-everything (V2X) communication chips. Qualcomm acquired Autotalks in May 2023 to enhance its automotive V2X offerings. The V2X chip market, where Autotalks is a major player, is projected for significant growth, from $2.6 billion in 2022 to $87.3 billion by 2032.
- NXP Semiconductors NV
- NXP Semiconductors NV is an automotive chip manufacturer. In 2018, a USD 44 billion bid by Qualcomm for NXP Semiconductors NV fell apart after Chinese regulators declined to approve the deal. NXP is also a major player in the V2X chip market.
- Veoneer Inc.
- Veoneer Inc. is a Swedish firm acquired by Qualcomm in 2021 for $4.6 billion. This acquisition allowed Qualcomm to expand into the autonomous driving market, competing with companies like Intel's Mobileye and Nvidia Corp.
- Intel Corp.
- Intel Corp. is mentioned in the article as a competitor of Qualcomm in the automotive chip market, specifically through its Mobileye division. This competition highlights the broader landscape of technology rivalry between the U.S. and China, particularly in strategic sectors like semiconductors and automotive.
- Nvidia Corp.
- Nvidia Corp. is mentioned in the article as a competitor to Qualcomm in autonomous driving technology. Along with other U.S. firms like Google and DuPont de Nemours Inc., Nvidia is currently under antitrust review in China. On September 15, Chinese regulators found Nvidia in violation of antitrust rules and announced a further investigation.
- Infineon Technologies AG
- Infineon Technologies AG is a major player in the Vehicle-to-Everything (V2X) chip market. This market, valued at $2.6 billion in 2022, is projected to reach $87.3 billion by 2032. Other significant companies in this sector include Qualcomm, NXP, STMicroelectronics NV, and Autotalks.
- STMicroelectronics NV
- STMicroelectronics NV is recognized as a major player in the V2X (vehicle-to-everything) chip market. This market, which was valued at $2.6 billion in 2022, is projected to grow significantly to $87.3 billion by 2032.
- The article mentions that other U.S. firms, including Google, are also currently under antitrust review in China. However, no specific details about the nature or status of Google's antitrust review are provided.
- DuPont de Nemours Inc.
- DuPont de Nemours Inc. (杜邦公司) is mentioned as one of the U.S. firms, alongside Google and Nvidia, that are currently under antitrust review in China. The article does not provide further details about the nature or status of DuPont's specific antitrust investigation.
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What Happened When
- 2015：
- Qualcomm was fined 6.1 billion yuan for anticompetitive licensing practices in China.
- 2018：
- Qualcomm's $44 billion bid for NXP Semiconductors NV collapsed after Chinese regulators declined to approve the deal.
- 2021：
- Qualcomm acquired Swedish firm Veoneer Inc. for $4.6 billion, signaling its expansion into autonomous driving.
- 2022：
- China amended its antitrust law to allow penalties of up to 10% of a company’s previous year’s sales in China.
- 2022：
- The V2X chip market was valued at $2.6 billion.
- May 2023：
- Qualcomm announced its planned acquisition of Israeli automotive chip manufacturer Autotalks Ltd.
- June 2023：
- Qualcomm completed the acquisition of Autotalks Ltd.
- 2024 fiscal year：
- Qualcomm generated $17.8 billion in revenue from China (46% of total revenue).
- 2025-09-15：
- SAMR found Nvidia in violation of antitrust rules and announced further investigation.
- 2025-10-10：
- China’s State Administration for Market Regulation (SAMR) announced an antitrust investigation into Qualcomm over the Autotalks acquisition and Qualcomm’s shares fell 2.9% in premarket trading.
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