On the afternoon of October 12th, reputable official media sources, including the People's Daily, reported that the State Administration for Market Regulation (SAMR) had taken an unprecedented step. It employed a detailed timeline to meticulously reconstruct the entire sequence of events surrounding Qualcomm's acquisition of the Israeli chip company Autotalks.

The SAMR affirmed that the pertinent facts were unequivocal and the evidence was incontrovertible. Qualcomm, in turn, has acknowledged these facts.

At present, a legal investigation has commenced concerning the unlawful implementation of concentration of undertakings.

This highly anticipated antitrust case had its genesis in May 2023 when Qualcomm publicly declared its intention to acquire Autotalks, a company specializing in V2X (Vehicle-to-Everything) chips for vehicles. Given that the transaction amount did not surpass the statutory reporting threshold, Qualcomm opted to proceed discreetly.

However, it was swiftly reported that the combined market share of the two entities in the global automotive-grade V2X chip market was exceedingly high. For instance, post-transaction, Qualcomm's market share was projected to skyrocket to 58%, potentially leaving global automakers with no alternative supply options for crucial components and fostering a risk of market monopoly.

The SAMR promptly initiated an impact assessment. On March 12, 2024, it issued a written notice to Qualcomm, explicitly mandating that the transaction be reported in compliance with the law and that the concentration not be implemented until the report received approval.

Two days subsequent to this notice, Qualcomm indicated its intention to abandon the transaction, and it appeared that the matter had been resolved. Nevertheless, in June 2025, regulatory authorities received another report and resumed their investigation, uncovering that the ownership of Autotalks had been transferred and that Qualcomm had acquired 100% control of the company.

Confronted with regulatory inquiries, Qualcomm conceded that it had completed the acquisition quietly, without re-reporting to or communicating with the regulatory authorities.

Due to its suspected violation of Article 26 of the Anti-Monopoly Law, which constitutes illegal acts of 'failure to report when required' and 'implementation of concentration before approval,' regulatory authorities have initiated a legal investigation. On October 12th, the progress of the investigation continued to be publicly disclosed, with clear facts and conclusive evidence.

Industry experts noted that Qualcomm's maneuver—initially pledging to abandon the acquisition and then secretly finalizing the transaction—is a rare occurrence in the annals of global antitrust enforcement. Although the transaction amount may appear modest, it is, in essence, about seizing control over the 'voice' in next-generation vehicle networking technology. Autotalks' dual-mode chips can simultaneously support both DSRC (Dedicated Short-Range Communications) and C-V2X (Cellular V2X) standards, which are essential for automakers' global strategic布局 (translated as "layout" here to convey the strategic planning aspect).

According to the relevant provisions of the Anti-Monopoly Law, the unlawful implementation of concentration of undertakings can result in a fine of up to 10% of the previous year's sales revenue. Qualcomm's global revenue for fiscal year 2024 reached $38.96 billion, with the Chinese market contributing 46% of that total, approximately $17.92 billion. Based on this, the potential fine could be substantial. If the investigation determines that the transaction has the effect of excluding or restricting competition, Qualcomm may also face penalties such as divestiture.

Currently, the signals emanating from this case are unmistakable: China's antitrust enforcement is placing increasing emphasis on qualitative supervision in key technology sectors, with a focus on safeguarding the market ecosystem in these areas. Any market participant that treats regulatory commitments as mere formalities may face severe consequences.

This development also presents opportunities for domestic V2X chip companies. Huawei, ZTE, and Gaohong shares, among others, are making significant strides in technological substitution and market share expansion.