China’s State Administration for Market Regulation (SAMR) has launched an antitrust investigation into Qualcomm Inc (NASDAQ:QCOM, ETR:QCI) related to the US chipmaker’s acquisition of Israeli vehicle semiconductor company Autotalks, citing concerns that the company may have failed to properly declare the transaction under Chinese anti-monopoly law.
The reportedly probe focuses on whether Qualcomm followed regulatory filing procedures during its purchase of Autotalks, which was completed in June 2025.
The move comes as Chinese authorities increase scrutiny of foreign semiconductor mergers and acquisitions amid a backdrop of heightened geopolitical and regulatory tensions between Beijing and Washington.
The timing of the investigation also coincides with preparations for a planned meeting later this month between US President Donald Trump and Chinese President Xi Jinping.
The probe adds to a series of regulatory actions by Chinese authorities targeting major American technology firms, including Nvidia Corp (NASDAQ:NVDA, ETR:NVD), and follows recent export controls on rare earth materials that have intensified technology-sector friction between the two countries.
Analysts at Wedbush noted that this news follows a string of announcements that seemingly represent points that China can use as leverage in upcoming trade talks with the US.
They pointed to allegations Nvidia did not follow through on stipulated terms tied to its purchase of Mellanox and an increase in Chinese materials requiring export licenses, including certain rare earths like neodymium.
“Net, we see forthcoming negotiations as critical for technology, and much of our hardware coverage, given the potential disruptions in supply chains and markets that a greater fracture of US/China relations could yield as suggested by China's recent actions,” Wedbush wrote.