Qualcomm admits it failed to notify Beijing about Autotalks acquisition, regulator says
China’s market watchdog says the U.S. chipmaker acknowledged closing its Israeli deal without required approval.
U.S. semiconductor manufacturer Qualcomm admitted that it had not informed Chinese authorities when it completed its acquisition of Israel's Autotalks in June, China's market regulator said on Sunday.
The disclosure was made two days after China launched an antitrust investigation into Qualcomm, examining whether the U.S. firm violated China's antitrust law by not declaring some details of its acquisition of the Israeli chip designer.
Qualcomm did not immediately respond to request for comment.
China's State Administration for Market Regulation (SAMR) said it informed Qualcomm in March 2024 that the deal requires approval by the regulator, and the U.S. firm in the same month notified SAMR it wouldn't pursue further.
However, Qualcomm in June this year completed the deal without informing the authority, the regulator said, adding Qualcomm "acknowledged above facts", based on which Beijing launched the antitrust probe.
Qualcomm's shares fell more than 5% on Friday after U.S. President Donald Trump threatened to hike tariffs against China and cancel a planned meeting with President Xi Jinping.
Qualcomm had first announced plans to acquire Autotalks in 2023, but abandoned the bid the following year after delays in securing regulatory clearance. The company later revived the agreement, finalizing the purchase in June for less than $100 million, a steep discount from the $350-400 million valuation once attached to the Israeli startup.
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Autotalks, founded in Kfar Netter and backed by investors including Samsung Catalyst, Hyundai, Liberty, and Foxconn, developed vehicle-to-vehicle (V2X) communication chips that transmit speed, location, and braking data between cars to help prevent collisions. Despite early promise and $150 million in investment, the company struggled to achieve meaningful commercial traction. Qualcomm’s offer, once seen as a lifeline, ultimately became a low-value rescue.
Under the agreement, all of Autotalks’ roughly 100 employees joined Qualcomm’s automotive division, with former CEO Hagai Zyss appointed vice president of product management.
China’s regulators did not specify what elements of the transaction were under scrutiny but said the review focused on potential violations of merger-notification requirements under the country’s Anti-Monopoly Law.
