BEIJING (Reuters) -- China has launched an antitrust investigation into U.S. semiconductor manufacturer Qualcomm over its acquisition of Israel's Autotalks, China's market regulator said on Friday.
China's State Administration for Market Regulation said the probe would look at whether Qualcomm violated China's antitrust law by not lawfully declaring some details in its acquisition of the Israeli chip designer.
Qualcomm shares fell 1.2% in premarket trading.
San Diego-based Qualcomm said in June it had finalised the deal for Autotalks, which makes communications chips to help prevent car crashes, without disclosing the size, or how it had resolved earlier sticking points.
Qualcomm had said in 2024 it would drop the bid for Autotalks after it failed to get regulatory approvals in a timely manner.
Qualcomm and Autotalks did not immediately respond to Reuters' requests for comment on the Chinese probe.
In 2015, the major supplier of mobile phone chips paid a $975 million fine to resolve a Chinese antitrust case.
The latest investigation comes after Beijing last month accused U.S. AI chip maker Nvidia of violating China's anti-monopoly law.
"The investigation adds to broader regulatory scrutiny of U.S. chipmakers in China," Equisights Research analyst Parth Talsania said.
"With Qualcomm deriving a notable portion of revenue from Chinese handset and automotive customers, we believe the announcement amplifies existing investor caution around geopolitical and regulatory risk," Talsania added.
Qualcomm derived 46% of its revenue in its fiscal 2024 from customers with headquarters in China.
Both probes could heighten tensions between China and the U.S. at a time when they appear to be struggling to move beyond a trade tariff truce.
U.S. President Donald Trump and Chinese leader Xi Jinping are expected to meet when they attend an Asia-Pacific Economic Cooperation summit in South Korea at the end of this month.
