EU regulators cast doubt over Qualcomm’s $350-400 million acquisition of Autotalks
EU regulators cast doubt over Qualcomm’s $350-400 million acquisition of Autotalks
The European Commission cited the importance of the deal to original equipment manufacturers and others who need access to vehicle-to-everything (V2X) semiconductors
U.S. chipmaker Qualcomm will have to seek EU antitrust approval for its planned takeover of Israeli auto-chip maker Autotalks even though the deal is below the European Union's turnover threshold, EU regulators said on Friday. Qualcomm announced the planned $350-400 million takeover in May to expand its automotive-related business.
The European Commission cited the importance of the deal to original equipment manufacturers and others who need access to vehicle-to-everything (V2X) semiconductors.
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.
It said Qualcomm would have to secure EU antitrust approval before it can close the deal.
"The transaction would combine two of the main suppliers of V2X semiconductors in the EEA (European Economic Area). The V2X technology is key to improving road safety, traffic management and reducing CO2 emissions as well as for the deployment of autonomous vehicles," the Commission said in a statement.
"It is therefore important to ensure that customers such as original equipment manufacturers or infrastructure managers retain access to V2X technology at competitive prices and conditions."
Autotalks is a fabless semiconductor company that has been dedicated to vehicle-to-everything (V2X) communications since 2009. The company provides automotive-qualified dual-mode global V2X solutions compatible with multiple V2X standards that are designed to reduce collisions and improve mobility. Autotalks, which has raised a total of $110 million to date, employs around 120 people.
Qualcomm acquired Israeli startup Cellwize for $350 million in June 2022 and has purchased several other Israeli companies in the past, including paying $300 million for Wilocity in 2014 and $45 million for CSR Israel’s imaging unit.
Qualcomm had said last year that its automotive business "pipeline" had increased to $30 billion, up more than $10 billion since an announcement in late July.
The company credited the jump to its Snapdragon Digital Chassis product used by car makers and their suppliers. The Snapdragon Digital Chassis can provide assisted and autonomous driving technology, as well as in-car infotainment and cloud connectivity.
Qualcomm on Monday said it would incorporate Autotalks' solutions into the Snapdragon Digital Chassis product portfolio, but did not elaborate on the financials of the deal.
