Microchip and Qualcomm logo displayed on a phone screen are seen in this multiple exposure illustration photo taken in Krakow, Poland on April 10, 2023.
Jakub Porzycki | Nurphoto | Getty Images
Qualcomm shares fell on Friday after Chinese regulators said it would investigate the American tech giant’s acquisition of chip firm Autotalks, ramping up tensions between the U.S. and China ahead of key meetings between the country’s leaders this month.
Shares were last around 3% lower in premarket trading.
China’s State Administration of Market Regulation (SAMR) said that Qualcomm is suspected of violating the country’s anti-monopoly law in regards to its acquisition of Israeli firm Autotalks. The acquisition officially closed in June, just over two years after it was first announced.
In a short statement, the SAMR said it would initiate an investigation into Qualcomm.
Qualcomm was not immediately available for comment when contacted by CNBC. The company sells its smartphone chips to some of the biggest players in China such as Xiaomi.
U.S. tech companies have recently been in the crosshairs of Chinese regulators ramping up tensions between Beijing and Washington ahead of key talks.
In September, the SAMR alleged that Nvidia had violated the country’s anti-monopoly law in relation to its acquisition of Mellanox and some agreements made during the acquisition. Meanwhile, Beijing has reportedly been discouraging local firms from buying Nvidia chips.
This week, China also tightened export controls on rare earths and related technologies. Rare earths are critical to high-tech industries, including automobiles, defense and semiconductors.
U.S. President Donald Trump and his Chinese counterpart Xi Jinping are expected to meet in person on the sidelines of the Asia-Pacific Economic Cooperation forum during the last week of October in Gyeongju, South Korea.
