Qualcomm shares fall after China opens antitrust probe into chip giant
The Microchip and Qualcomm logo displayed on a phone screen are seen in this multiple exposure illustration photo taken in Krakow, Poland, on April 10, 2023.
Jakub Porzycki | Nurfoto | Getty Images
Qualcomm Shares fell on Friday after Chinese regulators said they would investigate the American tech giant’s acquisition of chip firm Autotalks; This has increased tensions between the US and China ahead of key meetings between the countries’ leaders this month.
Shares were down about 3% in premarket trading.
China’s State Administration of Market Regulation (SAMR) said Qualcomm is suspected of violating the country’s anti-monopoly law regarding its acquisition of Israeli firm Autotalks. The acquisition officially closed in June, just two years after it was first announced.
Making a short statement, SAMR said that it would launch an investigation against Qualcomm.
Qualcomm was not immediately available for comment when contacted by CNBC. The company sells its smartphone chips to some of the biggest players in China, such as Xiaomi.
US tech companies have recently been targeted by Chinese regulators, who have increased tensions between Beijing and Washington ahead of key talks.
In September SAMR claimed: Nvidia It had violated the country’s antitrust law in connection with its acquisition of Mellanox and certain agreements made during the acquisition. Meanwhile, Beijing is reportedly discouraging local firms from purchasing Nvidia chips.
This week, China also tightened export controls on rare earth elements and related technologies. Rare earths are critical to high-tech industries including automobiles, defense and semiconductors.
US President Donald Trump and his Chinese counterpart Xi Jinping are expected to meet in person on the sidelines of the Asia-Pacific Economic Cooperation forum to be held in Gyeongju, South Korea, in the last week of October.
