Washington – In a National Security move, Pres Trump on Monday issued an order to prohibit Singapore-based Broadcom’s effort to take over Qualcomm.
Qualcomm’s chips are used in a host of mobile phone products. Part of the concerns by the White House are tied to Broadcom’s third-party relationship with Chinese vendors.
This move signals a higher sensitivity to the potential impact on America’s Defense and Security infrastructure as critical components made by US firms may become foreign-owned, via hostile takeovers.
This also signals a stronger review of the impact on certain mergers may have on America’s competitiveness, via China. Broadcom’s hostile takeover attempt was reviewed by the Committee on Foreign Investment in the United States or (CFIUS), which operates as an inter-agency branch of the Treasury Department that examines the impact of commercial deals involving foreign entities, and how that may affect national security.
Of particular concern in this deal is the potential impact this takeover would have on Qualcomm competitiveness in the rollout of 5-G applications, which is the next major stage in mobile and other applications.
