Donald Trump has signed an executive order that blocks Broadcom from buying Qualcomm. The takeover has been talked about for a number of months, but now the president — in line with his
Donald Trump has signed an executive order that blocks Broadcom from buying Qualcomm. The takeover has been talked about for a number of months, but now the president — in line with his “America first” drive — has scuppered what would have been the largest technology deal ever.
Had the deal gone ahead, a merged Broadcom and Qualcomm would have been responsible for a massive proportion of the chips in phones, computers and connected devices. But US concerns about China mean that the deal is now very much off the table.
While Broadcom was extremely interested in snapping up Qualcomm, the San Diego-based Qualcomm had already declined bids from the company. The bids were also the subject of an investigation by the US Committee on Foreign Investment in the United States (CFIUS), and the investigators expressed concern about Broadcom’s potential to stifle Qualcomm’s research and investment in 5G technology.
In a letter earlier this month, the CFIUS said:
This is something that Trump and his team clearly took into account with the latest executive order. In it, he says:
Based on these findings, the order goes on to say:
Following news of the order, Broadcom said that it “strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns.”
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