China’s market regulator has launched an antitrust investigation into US semiconductor manufacturer Qualcomm after the company admitted it did not notify authorities about its acquisition of Israeli chipmaker Autotalks, completed in June this year.

The State Administration for Market Regulation (SAMR) said on Sunday that Qualcomm had been informed in March 2024 that the transaction required regulatory approval under Chinese law. In the same month, the company told the regulator it would not proceed with the deal.

However, SAMR said Qualcomm later completed the acquisition without notifying the authority, a move the firm has since acknowledged.

The probe, announced two days after its launch, will examine whether the US company violated China’s antitrust regulations by failing to declare details of the acquisition. Qualcomm has yet to respond to requests for comment, according to Reuters.

Autotalks, based in Israel, specializes in vehicle-to-everything (V2X) communication technologies that enable real-time data sharing between vehicles and road infrastructure. The acquisition forms part of Qualcomm’s strategy to strengthen its position in the growing market for automotive semiconductors.

The development comes amid escalating trade tensions between Washington and Beijing. Qualcomm’s shares fell more than 5 per cent on Friday after former US President Donald Trump threatened to raise tariffs on Chinese imports and cancel a planned meeting with Chinese President Xi Jinping.

Industry observers say the case highlights Beijing’s increasing vigilance over global tech mergers involving critical sectors such as chips and telecommunications, areas central to its strategic competition with the United States.