Qualcomm shares fall after China opens antitrust probe into the U.S. chip giant

Core Viewpoint - Qualcomm's acquisition of Autotalks is under investigation by Chinese regulators for potential anti-monopoly violations, heightening tensions between the U.S. and China ahead of significant diplomatic meetings [1][2]. Group 1: Regulatory Actions - China's State Administration of Market Regulation (SAMR) suspects Qualcomm of violating anti-monopoly laws related to its acquisition of Autotalks, which was completed in June after over two years since the announcement [2]. - The SAMR has previously alleged that Nvidia violated anti-monopoly laws concerning its acquisition of Mellanox, indicating a pattern of scrutiny on U.S. tech firms by Chinese regulators [4]. Group 2: Market Impact - Qualcomm shares fell approximately 3% in premarket trading following the announcement of the investigation [1]. - The investigation comes at a time when U.S. tech companies are facing increased regulatory challenges in China, which could impact their market positions and operations [3]. Group 3: Broader Context - The investigation occurs against a backdrop of escalating tensions between Beijing and Washington, with key meetings between U.S. President and Chinese President expected at the Asia-Pacific Economic Cooperation forum later in October [5]. - China has also tightened export controls on rare earths, which are essential for high-tech industries, further complicating the operational landscape for U.S. tech firms [4].