China Launches Antitrust Investigation into Qualcomm

Investigation Against Qualcomm by China

China has officially launched an investigation into Qualcomm, one of the world's leading chip manufacturers, on suspicion of violating antitrust regulations. The China State Administration for Market Regulation will investigate whether Qualcomm's acquisition of the Israeli automotive chip and communication solutions developer Autotalks violates China's Anti-Monopoly Law.

Qualcomm announced the completion of this acquisition in June 2023. The company is well-known for its prominent "Snapdragon" mobile device chips and generates 46% of its revenues from China, which makes up the largest portion of the global smartphone market.

Investigation Against Nvidia

Recently, China also initiated a similar investigation against Nvidia. In a statement made on December 9, 2024, it was found that Nvidia acted contrary to the conditions of the approval received for its acquisition of Mellanox in 2019.

As a result, Nvidia's investigation will be deepened. The Beijing administration is questioning the company's activities due to violations during this process.

Micron and Cybersecurity

Before these developments, China launched a cybersecurity investigation against Micron Technologies on March 31, 2023. The investigation revealed security risks in Micron's products that could harm China's critical information infrastructure, leading to a ban on Micron's sales to Chinese companies.

Chip Wars and US Laws

When we evaluate these fronts within a broader context, the CHIPS and Science Act of the US and the chip wars initiated in 2022 play a significant role. Under the leadership of former President Joe Biden, efforts were made to prevent the transfer of technologies that could threaten national security. The Biden administration has clearly articulated its strategy to maintain US technological superiority by imposing trade restrictions on Chinese manufacturers.