Qualcomm Stock Drops. China Goes After the Chip Maker.

The chip maker is under investigation by China’s State Administration for Market Regulation. (AFP via Getty Images)

Key Points

• Qualcomm is under investigation by China’s market regulator for allegedly violating anti-monopoly law.
• The probe concerns Qualcomm’s acquisition of Autotalks and cites a failure to declare full information.
• Qualcomm acquired Autotalks for an undisclosed fee earlier this year.

Qualcomm is under investigation for allegedly violating Chinese anti-monopoly law, China’s top market regulator announced Friday.

The State Administration for Market Regulation**, or SAMR,** claimed the chip maker failed to declare full information in its acquisition of Israeli semiconductor company Autotalks.

“We are fully cooperating with SAMR in this matter,” a Qualcomm spokesperson told Barron’s in a statement. “Qualcomm is committed to supporting the development and growth of our customers and partners.”

The company acquired Autotalks for an undisclosed fee earlier this year. The pair initially struck a deal in 2023, but the agreement fell through amid anti-monopoly investigations by the Federal Trade Commission and U.K. regulators.

Qualcomm stock was down 5% Friday. U.S. stocks fell sharply after President Donald Trump threatened a “massive” hike in tariffs on China in response to Beijing expanding export controls for much of its rare earth supply chain. The tech-heavy Nasdaq Composite was down 1.9%.

Write to Nate Wolf at nate.wolf@barrons.com