US FTC to Probe Qualcomm’s Israeli Chipmaker Autotalks Aquisition Deal: Report

The US Federal Trade Commission (FTC) is predicted to open an in-depth probe on Wednesday of Qualcomm’s buy of Israeli auto-chip maker Autotalks, Politico reported on Tuesday, citing individuals acquainted with the matter.

In May, Qualcomm had mentioned it will purchase Israel’s Autotalks, a maker of chips utilized in crash-prevention expertise in autos, however had not disclosed the phrases of the deal.

Autotalks, which makes devoted chips used within the V2X communications expertise sector for manned and driverless autos, would assist Qualcomm increase its automotive-related enterprise.

Last week, EU regulators had additionally mentioned that the US chipmaker must search EU antitrust approval for the deliberate takeover.

The EU competitors watchdog mentioned 15 EU nations, together with France, Ireland, Italy, the Netherlands, Poland, Spain and Sweden, had requested it to look at the deal.

Qualcomm, Autotalks and the FTC didn’t instantly reply to requests for remark.

Earlier in August, Qualcomm had projected its fourth-quarter gross sales beneath market expectations as client spending on devices like smartphones remained stubbornly weak amid slowing world financial development.

The US chipmaker mentioned Autotalk’s expertise can be included into its assisted and autonomous driving product, referred to as Snapdragon Digital Chassis.

Qualcomm mentioned in September final 12 months that its automotive enterprise “pipeline”, or potential future orders, rose by greater than $10 billion (roughly Rs. 82,100 crore) to $30 billion (roughly Rs. 2,46,100 crore) since its third-quarter outcomes had been introduced in late July, as automakers more and more equip their vehicles with driver-assistance methods.

The firm, which has credited the bounce to its Snapdragon Digital Chassis product, competes with Intel’s Mobileye Global and Nvidia for that slice of the market.

© Thomson Reuters 2023

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