China says Qualcomm admitted to acquiring Autotalks without informing regulator

Posted by Selena Li

HONG KONG (Reuters) – U.S. semiconductor maker Qualcomm admitted on Sunday that it did not inform Chinese officials when it completed its purchase of Israel’s Autotalks in June.

The statement was made two days after China launched an antitrust investigation into Qualcomm; This investigation focused on whether the US company violated China’s antitrust law by not disclosing certain details about its acquisition of the Israeli chip designer.

Qualcomm did not immediately respond to Reuters’ request for comment.

China’s State Administration of Market Regulation (SAMR) said it notified Qualcomm in March 2024 that the deal would need to be approved by the regulator, and the US firm notified SAMR in the same month that it would not proceed further.

But the regulator said Qualcomm completed the deal in June this year without notifying the authority, adding that Qualcomm “admitted to being above the facts” based on Beijing launching the antitrust investigation.

Shares of Qualcomm fell more than 5% on Friday after U.S. President Donald Trump threatened to raise tariffs against China and cancel a planned meeting with President Xi Jinping.

(Report by Selena Li)