China says Qualcomm admitted it completed its Autotalks acquisition without notifying regulators

12 October 2025

Chinese authorities have revealed that U.S. semiconductor giant Qualcomm acknowledged acquiring Israeli chip designer Autotalks in June without notifying China’s regulator ahead of the deal, a move the country’s antitrust agency says violates its merger notification laws.

The announcement came just days after China’s State Administration for Market Regulation (SAMR) formally launched an antitrust probe into Qualcomm. The regulator claims Qualcomm had been told in March 2024 that the transaction would require approval in China, but the firm replied it would not pursue that approval. Nevertheless, Qualcomm went ahead and closed the deal months later without that requisite consent, triggering the current investigation.

Qualcomm has yet to publicly comment on the matter. Its stock took a hit in response to the news shares dropped more than 5 percent in trading following the report.

Analysts observe that this episode underscores the growing tension around foreign tech firms doing business in China. Qualcomm derives a large share of revenue from the Chinese market, which means regulatory reprisals could affect both operations there and broader global strategy.

The timing also suggests political overtones. The probe arrives during a period of intensifying trade and technology disputes between Washington and Beijing, specifically in semiconductors, which are viewed as strategic assets in national and economic competition.

There are questions about how this will play out. Will Qualcomm seek to reverse or renegotiate the deal in China? Could penalties or forced divestiture follow if the probe finds violations? Observers will also be watching whether China’s move is intended to gain leverage in broader trade talks or to send a message to foreign technology firms operating within its borders.