Qualcomm $400 Million Chip Deal: Qualcomm needs EU approval for $400 million Autotalks chip deal

Qualcomm announced its plans to acquire Israel-based auto chipmaker Autotalks in May. The US-based mobile chipmaker was reportedly paying between $350 million and $400 million for the startup. According to a report by Reuters, Qualcomm will now have to seek the approval of European Unionantitrust regulators for its planned takeover. EU regulators have said they will probe the deal even though the deal is below its turnover threshold.
Why EU is probing this deal
The European Commission has stated that the deal is important for both original equipment manufacturers (OEMs) and other companies that need access to vehicle-to-everything (V2X) semiconductors.
As per the EU competition watchdog, 15 EU countries, including France, Italy, the Netherlands, Spain, Ireland, Sweden, Poland and more has requested an investigation into the deal. The regulators want Qualcomm to secure EU antitrust approval before it can close the deal.
EU stated: “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 makes dedicated chips used in manned and driverless vehicles. These chips are used by the V2X communications technology sector for improving road safety.
How Autotalks is important for Qualcomm
Qualcomm is looking for success in its automotive business. The company reportedly has customers like

Volkswagen, General Motors, Mercedes-Benz, Cadillac, Honda and Stellantis.
In September 2022, the chipmaker claimed that its “automotive design-win pipeline has grown to $30 billion, driven by increased adoption of its Snapdragon Digital Chassis solutions across the auto industry.”
The company also announced Qualcomm and Mercedes-Benz have also announced a partnership to power upcoming vehicles with Snapdragon Digital Chassis solutions.
In a statement to TechCrunch, Nakul Duggal, senior vice president & GM, of automotive, at Qualcomm said: “We have been investing in V2X research, development and deployment since 2017 and believe that as the automotive market matures, a standalone V2X safety architecture will be needed for enhanced road user safety, as well as smart transportation systems. We share Autotalks’ decades-long experience and commitment to building V2X technologies and products with a focus on solving real-world road user safety challenges. We look forward to working together to deliver global V2X solutions that will help accelerate time-to-market and enable mass market adoption of this very important safety technology.”