The State Administration for Market Regulation (SAMR) said on Sunday that Qualcomm had acknowledged completing the deal in June 2024 without notifying Chinese authorities, despite being told months earlier that regulatory approval was necessary.
According to SAMR, Qualcomm was informed in March 2024 that the Autotalks acquisition required antitrust clearance. The U.S. company initially indicated that it would not move forward with the deal, but subsequently finalized it without alerting the regulator. SAMR said this admission formed the basis for Beijing’s decision to launch a formal investigation.
Qualcomm, which supplies chips to major smartphone makers and is a key player in the 5G and automotive semiconductor markets, did not immediately respond to Reuters for comment.
The probe comes amid heightened U.S.-China trade tensions and increased scrutiny of foreign technology firms operating in China. Qualcomm’s shares dropped more than 5% on Friday, following remarks by U.S. President Donald Trump, who threatened to raise tariffs on Chinese goods and cancel a planned meeting with President Xi Jinping.
Industry observers say the investigation underscores China’s growing assertiveness in enforcing its antitrust laws, particularly against multinational tech companies seen as strategically significant in the global semiconductor race.
The outcome of the probe could have implications for Qualcomm’s operations and partnerships in the Chinese market—one of its largest sources of revenue—at a time when both Washington and Beijing are intensifying efforts to secure dominance in advanced chip technologies.