Tuesday, August 22, 2023

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

The US Federal Trade Commission (FTC) is expected to open an in-depth probe on Wednesday of Qualcomm's purchase of Israeli auto-chip maker Autotalks, Politico reported on Tuesday, citing people familiar with the matter.

In May, Qualcomm had said it would acquire Israel's Autotalks, a maker of chips used in crash-prevention technology in vehicles, but had not disclosed the terms of the deal.

Autotalks, which makes dedicated chips used in the V2X communications technology sector for manned and driverless vehicles, would help Qualcomm expand its automotive-related business.

Last week, EU regulators had also said that the US chipmaker would have to seek EU antitrust approval for the planned takeover.

The EU competition watchdog said 15 EU countries, including France, Ireland, Italy, the Netherlands, Poland, Spain and Sweden, had asked it to examine the deal.

Qualcomm, Autotalks and the FTC did not immediately respond to requests for comment.

Earlier in August, Qualcomm had projected its fourth-quarter sales below market expectations as consumer spending on gadgets like smartphones remained stubbornly weak amid slowing global economic growth.

The US chipmaker said Autotalk's technology would be incorporated into its assisted and autonomous driving product, called Snapdragon Digital Chassis.

Qualcomm said in September last year that its automotive business "pipeline", or potential future orders, rose by more than $10 billion (roughly Rs. 82,100 crore) to $30 billion (roughly Rs. 2,46,100 crore) since its third-quarter results were announced in late July, as automakers increasingly equip their cars with driver-assistance systems.

The company, which has credited the jump 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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