Advertisement
China launches antitrust probe into US chip giant Qualcomm
The investigation is related to Qualcomm’s acquisition of the Israeli vehicle semiconductor company Autotalks
Reading Time:3 minutes
Why you can trust SCMP
9
China has opened an investigation into US chip giant Qualcomm, as Beijing intensifies its technology war with Washington amid heightened trade tensions.
The US company was suspected of violating China’s anti-monopoly law in its acquisition of the Israeli vehicle semiconductor company Autotalks, the State Administration for Market Regulation (SAMR) said in a statement on Friday, without disclosing further details.
Qualcomm announced in June that it had completed the acquisition of Autotalks, which specialises in “direct vehicle-to-everything” solutions.
Advertisement
The US chip designer did not immediately respond to a request for comment.
Qualcomm will face a fine of up to 5 million yuan (US$702,000) for not asking for prior approval of the Autotalks deal, according to Liu Xu, a research fellow at the National Strategy Institute of Tsinghua University, citing China’s antitrust law.
Advertisement
Liu said there was a chance Qualcomm could be further punished if the regulator finds the deal had the effect of “eliminating or restricting market competition”.
Advertisement
Select Voice
Choose your listening speed
Get through articles 2x faster
1.25x
250 WPM
Slow
Average
Fast
1.25x