A microchip and the Qualcomm logo are seen on a mobile phone screen in this illustrated multiple exposure photo taken on April 10, 2023 in Krakow, Poland.
Jakub Porzycki | Null Photo | Getty Images
Qualcomm Stocks fell on Friday after Chinese regulators said they would investigate the U.S. tech giant’s acquisition of semiconductor company Autotalks, raising tensions between the U.S. and China ahead of important talks between the leaders this month.
Shares were down about 3% in recent pre-market trading.
China’s State Administration for Market Regulation (SAMR) has announced that Qualcomm is suspected of violating the country’s antitrust laws in its acquisition of Israeli company Autotalks. The acquisition was officially completed in June, just over two years after it was first announced.
In a short statement, SAMR said it would launch an investigation into Qualcomm.
Qualcomm did not immediately respond to CNBC’s request for comment. The company sells smartphone chips to China’s biggest companies, including Xiaomi.
US tech companies have recently been targeted by Chinese regulators, escalating tensions between China and the US ahead of key talks.
SAMR claimed in September that: Nvidia The acquisition of Mellanox and certain agreements entered into at the time of the acquisition violated the country’s antitrust laws. Meanwhile, the Chinese government is reportedly discouraging local companies from purchasing NVIDIA chips.
This week, China also tightened export controls on rare earths and related technologies. Rare earths are essential to high-tech industries such as automotive, defense, and semiconductors.
US President Donald Trump and Chinese President Xi Jinping are scheduled to meet face-to-face in the last week of October on the sidelines of the Asia-Pacific Economic Cooperation Forum in Gyeongju, South Korea.
