Microchip and Qualcomm emblem displayed on a cellphone display screen are seen on this a number of publicity illustration photograph taken in Krakow, Poland on April 10, 2023.
Jakub Porzycki | Nurphoto | Getty Photographs
Qualcomm shares slipped on Friday after Chinese language regulators stated they’d examine the American tech big’s acquisition of chip agency Autotalks, ramping up tensions between the U.S. and China forward of key conferences between the nation’s leaders this month.
China’s State Administration of Market Regulation (SAMR) stated that Qualcomm is suspected of violating the nation’s anti-monopoly legislation with regard to its acquisition of Israeli agency Autotalks. The acquisition formally closed in June, simply over two years after it was first introduced.
In a brief assertion, the SAMR stated it will provoke an investigation into Qualcomm.
Qualcomm was not instantly out there for remark when contacted by CNBC. The corporate sells its smartphone chips to a number of the largest gamers in China, equivalent to Xiaomi.
U.S. tech firms have lately been within the crosshairs of Chinese language regulators, ramping up tensions between Beijing and Washington forward of key talks.
In September, the SAMR alleged that Nvidia had violated the nation’s anti-monopoly legislation in relation to its acquisition of Mellanox and a few agreements made through the acquisition. In the meantime, Beijing has reportedly been discouraging native companies from shopping for Nvidia chips.
This week, China additionally tightened export controls on uncommon earths and associated applied sciences. Uncommon earths are essential to high-tech industries, together with vehicles, protection and semiconductors.
U.S. President Donald Trump and his Chinese language counterpart Xi Jinping are anticipated to fulfill in particular person on the sidelines of the Asia-Pacific Financial Cooperation discussion board over the last week of October in Gyeongju, South Korea.