China opens antitrust probe into Qualcomm's Autotalks deals

Core Viewpoint - The chip sector is experiencing significant declines due to escalating US-China trade tensions, particularly affecting major companies like Qualcomm and Nvidia [1][4]. Group 1: Qualcomm's Situation - Qualcomm shares have dropped by 5% amid the trade war, as it faces an antitrust probe from China's competition watchdog regarding its acquisition of Auto Talks [1][2]. - Nearly 50% of Qualcomm's sales are derived from companies based in China, raising concerns that ongoing tensions may lead Chinese customers to develop their own chips or switch to local competitors [3]. Group 2: Broader Industry Impact - The VANX semiconductor ETF has decreased by nearly 4%, with Nvidia and Qualcomm being the primary contributors to these losses, highlighting the vulnerability of American tech firms in the current geopolitical climate [5]. - China's recent actions include accusations against Nvidia for antitrust violations related to a past acquisition and restrictions on AI chip purchases from US suppliers, indicating a broader crackdown on American technology [4].