Qualcomm Slips as China Launches Antitrust Probe Into Autotalks Deal
Beijing's investigation into the automotive chip acquisition adds a new layer of regulatory risk for the US-based semiconductor giant, rattling investor confidence.
Qualcomm shares fell in premarket trading on Friday after China's market regulator announced it has launched an antitrust investigation into the US chipmaker's acquisition of Autotalks Ltd., an Israeli firm specializing in automotive communication technology. The probe introduces significant regulatory uncertainty for Qualcomm, which has a history of navigating complex legal challenges in key international markets.
on grounds that Qualcomm allegedly failed to properly declare the concentration of operators as required by the country's anti-monopoly laws. In response to the news, Qualcomm's stock (QCOM) dropped approximately 3% in premarket trading in New York, reflecting investor concern over the potential for the deal to be unwound or for the company to face significant fines.
Qualcomm originally announced its intention to acquire Autotalks in May 2023 to bolster its portfolio of vehicle-to-everything (V2X) communication chips, a critical technology for autonomous and connected vehicles. However, that initial effort was following pushback from antitrust authorities in the US and Europe. Despite the earlier termination, Qualcomm surprised the market by successfully closing the acquisition in June 2025, in a deal estimated to be worth between $350-$400 million.
This latest probe from Beijing adds a fresh layer of geopolitical and regulatory risk for Qualcomm, which derives a substantial portion of its revenue from China. The investigation echoes previous antitrust battles for the company, including a lengthy and costly dispute with Chinese regulators that concluded in 2015 with a nearly $1 billion fine. The outcome of this new investigation could have significant implications for Qualcomm's strategic ambitions in the rapidly growing automotive technology sector.
Analysts will be closely watching for any further statements from either Qualcomm or Chinese regulators. The probe not only jeopardizes the Autotalks acquisition but also signals that Beijing continues to closely scrutinize the operations of major US technology firms within its borders. as part of a broader trend of tech-related tensions between the US and China, with semiconductors often at the center of the dispute. For Qualcomm, navigating this latest challenge will be critical to maintaining its growth trajectory in the increasingly competitive global chip market.