Broadcom Ends Pursuit Of Qualcomm Following Trump Block

Broadcom Ends Pursuit Of Qualcomm Following Trump Block

Still, with Broadcom heading to the United States, this probably won't be the last time we hear about it attempting to take over another massive company, so stay tuned. "Trump's "America First" rhetoric has been dictating domestic policy, and a significant amount of his protectionist moves have been in the tech industry".

In a statement, Broadcom said that it was "disappointed with this outcome", and will no longer appoint nominees to Qualcomm's board.

Moreover, Broadcom CEO Tan Hock Eng has also promised to re-domicile Broadcom in the USA again.

According to London, Trump's decision to black Broadcom's hostile takeover of Qualcomm is part of a broader strategy to ensure global USA preeminence in technological innovation.

That followed a report by the Committee on Foreign Investment in the United States (CFIUS) warning that key technology could fall into the wrong hands if the deal were to go through.

More news: Alexa calling and messaging comes to tablet devices

Had it gone through, the acquisition would have been the largest technology deal in history. Fears that Broadcom would wind down Qualcomm's wireless R&D led the Committee on Foreign Investment in the USA, or CFIUS, to warn against the deal, which in turn prompted Trump to intervene. But it might slow it down, Fleming said: "They honestly believe they are helping to protect national security by doing this".

The president chose to block the deal on the advice of the Committee on Foreign Investment in the U.S. (CFIUS), an interagency panel that investigates foreign business deals for national security concerns.

"Perhaps more to the point, Qualcomm is an essential contracting partner of the United States government, holding a top secret facility security clearance". It also holds active sole source classified prime contracts with DOD.

Concern over China's potential influence, and rising USA protectionist sentiment, hung over the Singaporean firm's hostile takeover bid. "Then the U.S. would have no choice but to use Chinese equipment/technology in communications". "As a stand-alone entity moving forward, we still view Broadcom as one of the best-run companies in the semiconductor industry with secular growth drivers in RF (radio frequency), data center and networking (chips)". Qualcomm is participating in 5G trials already in operation by AT&T and Verizon, with initial deployment beginning this year. Broadcom had its headquarters in Irvine, Calif., until a Singapore-based company bought it in 2015. Whether the perceived protectionism resulting from the Presidential Order has any bearing on this in the European Union and other countries remains to be seen.

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