Key Takeaways
- Qualcomm’s acquisition of Israel-based auto-safety chipmaker Autotalks is said to be under investigation by Chinese regulators.
- Shares of the Qualcomm were down more than 4% in midday trading.
Qualcomm (QCOM) shares declined Friday following news Chinese regulators have opened an antitrust investigation of the chipmaker’s June purchase of Israel-based car safety semiconductor manufacturer Autotalks.
China’s State Administration for Market Regulation wrote in a statement seen by news organizations that it would be looking into whether Qualcomm unlawfully withheld certain details about the acquisition.
Why This Matters to Investors
China’s antitrust investigation into Qualcomm’s acquisition of Autotalks puts a spotlight on tensions that could affect U.S.-China trade talks. The investigation may influence Qualcomm’s operations in the region, which could weigh on investor sentiment.
Bloomberg reported that Beijing was targeting Qualcomm as part of an effort to gain leverage ahead of trade talks between President Donald Trump and Chinese President Xi Jinping expected at the end of the month. It noted China has already announced an antitrust probe of Nvidia (NVDA), and has slapped curbs on exports of rare earth and other key minerals to the U.S., as well as limiting imports of soybeans from American farmers.
Qualcomm did not respond to Investopedia‘s request for comment before publication.
Shares of the company have gained 3% since the start of the year, trailing the performance of tech stocks that have surged amid booming demand for AI.
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