Microchip and Qualcomm logo displayed on a phone screen are seen in this multiple exposure illustration photo taken in Krakow, Poland on April 10, 2023.
Qualcomm shares slipped on Friday after Chinese regulators said they would investigate the American tech giant's acquisition of chip firm Autotalks, ramping up tensions between the U.S. and China ahead of key meetings between the country's leaders this month.
China's State Administration of Market Regulation (SAMR) said that Qualcomm is suspected of violating the country's anti-monopoly law in regards to its acquisition of Israeli firm Autotalks. The acquisition officially closed in June, just over two years after it was first announced.
In a short statement, the SAMR said it would initiate an investigation into Qualcomm.
Qualcomm was not immediately available for comment when contacted by CNBC. The company sells its smartphone chips to some of the biggest players in China, such as Xiaomi .