Qualcomm Admits Closing Autotalks Deal Without Approval as China Opens Antitrust Probe
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China’s top market regulator has launched an antitrust investigation into U.S. semiconductor giant Qualcomm Inc. Photo: AI generated
U.S. chipmaker Qualcomm Inc. has acknowledged completing its acquisition of Israeli automotive-chip firm Autotalks Ltd. without seeking Chinese regulatory approval, China's top market regulator said on Sunday.
China’s State Administration for Market Regulation (SAMR) opened an antitrust investigation into Qualcomm two days earlier, over concerns that the firm may have violated China’s Anti-Monopoly Law by failing to report the transaction under rules requiring a review of significant mergers.
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- Qualcomm completed its acquisition of Israeli automotive-chip firm Autotalks in June 2025 without Chinese regulatory approval, prompting a Chinese antitrust probe.
- China’s penalties for unapproved mergers can reach 10% of annual sales; Qualcomm’s 2024 China revenue was $17.8 billion, so the maximum fine could be $1.78 billion.
- The investigation highlights increased antitrust scrutiny of U.S. tech firms in China, especially in the fast-growing automotive semiconductor sector.
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Who’s Who
- Qualcomm Inc.
- Qualcomm Inc. is a US chipmaker facing an antitrust investigation in China for acquiring Autotalks Ltd. without Chinese regulatory approval, despite being instructed not to proceed. This is not Qualcomm's first issue with Chinese regulators; in 2018, its acquisition of NXP failed due to a lack of approval, and in 2015, it was fined for patent licensing. China is Qualcomm's largest market, accounting for 46% of its 2024 revenue.
- Autotalks Ltd.
- Autotalks Ltd. is an Israeli automotive-chip firm, founded in 2008. It specializes in vehicle-to-everything (V2X) communication chipsets, a crucial technology for intelligent and connected vehicles. The company was acquired by U.S. chipmaker Qualcomm Inc. in June 2025.
- Google is an American tech firm currently facing an antitrust probe in China. This places Google alongside other major U.S. technology companies, like Qualcomm, that are under increased scrutiny by Chinese regulators.
- DuPont de Nemours Inc.
- DuPont de Nemours Inc. (referred to as DuPont company in Chinese) is an American technology firm that is currently facing an antitrust probe in China. It is one of several major U.S. tech firms, including Google and Nvidia Corp., encountering heightened antitrust scrutiny from Beijing.
- Nvidia Corp.
- Nvidia Corp. is an American tech firm currently facing an antitrust probe in China. On September 15, SAMR found Nvidia in violation of antitrust rules and announced a further investigation.
- NXP Semiconductors NV
- In 2018, Qualcomm's attempt to acquire Dutch chipmaker NXP Semiconductors NV ("NXP半导体") was terminated due to a failure in securing Chinese regulatory approval. This historical event with NXP Semiconductors NV is mentioned in the context of Qualcomm's past encounters with Chinese regulators.
- Veoneer A.B.
- Qualcomm expanded its presence in the automotive market by acquiring the Swedish autonomous driving firm, Veoneer A.B., in 2021 for $4.6 billion. This acquisition aimed to strengthen Qualcomm's position in advanced driver-assistance systems.
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What Happened When
- In 2015：
- Qualcomm was hit with a 6.1 billion yuan fine over its patent licensing practices for mobile phone components by Chinese regulators.
- In 2018：
- Qualcomm was forced to terminate its planned acquisition of Dutch chipmaker NXP Semiconductors NV after failing to secure Chinese approval.
- August 2022：
- China amended its antimonopoly law, raising the maximum penalty for failing to declare a merger.
- May 2023：
- Qualcomm announced plans to buy Israeli automotive-chip firm Autotalks Ltd.
- March 12, 2024：
- China's regulator formally instructed Qualcomm to file for a merger review and not to complete the Autotalks transaction until approval was granted.
- March 14, 2024：
- Qualcomm informed SAMR in writing that it was abandoning the deal.
- June 2025：
- Qualcomm finalized its acquisition of Autotalks Ltd. without Chinese regulatory approval.
- September 15, 2025：
- SAMR found Nvidia in violation of antitrust rules and announced further investigation.
- October 10, 2025：
- Shares of Qualcomm fell 7.3% following the initial announcement of regulatory developments.
- October 11, 2025：
- China's State Administration for Market Regulation (SAMR) opened an antitrust investigation into Qualcomm.
- October 12, 2025：
- Qualcomm told Caixin that it is actively cooperating with the Chinese regulator's investigation.
- October 13, 2025：
- China's top market regulator announced that Qualcomm had completed its acquisition of Autotalks without seeking Chinese regulatory approval.
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