Singapore-based Broadcom ditches efforts to take over U.S. chipmaker

The fight between the U.S. and China to influence 5G standards is gonna be really ugly

Singapore-based tech company Broadcom Limited announced Wednesday that it will comply with President Donald Trump's orders and cancel plans to force a takeover of USA chip maker Qualcomm.

It is uncertain whether or not this will circumvent the national security concerns and allow Broadcom to move past the executive order, however we know that for now, Qualcomm is free to proceed as normal without worrying of an impending hostile takeover.

Late Monday, Broadcom said in a statement regarding the order that it "strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns".

Update: Later in the day on Monday, March 12, after this story was published, President Trump signed an executive order prohibiting Broadcom from acquiring Qualcomm.

CFIUS was anxious that Broadcom's takeover would lead to a decline in investments in research and development in the sector, opening the door for Chinese firms to take the lead in developing next-generation wireless technology.

But the president ordered a block for any further attempt and disqualified any of Broadcom's potential direct appointees, essentially declaring the deal dead.




While they are rival chip companies, Broadcom and Qualcomm are very different in their approaches to the market, according to Mr Moorhead.

Tan bought California-based companies Broadcom for US$37 billion in a leveraged deal in 2015 and Brocade Communications in a US$5.5 billion deal two years later.

One major worry for the technology industry is that the White House's move to block the deal will hinder foreign investment in the USA, even as the Trump administration seeks to make the country friendlier to businesses. It requires Broadcom and Qualcomm to "immediately and permanently abandon the proposed takeover". Broadcom is still expected to complete its re-domiciliation process by early spring and move its corporate headquarters back to San Jose next month.

Broadcom's attempted takeover came as companies around the world are gearing up to build ultra-fast "5G" mobile networks that could tip the balance of power in technology.

Last week's Treasury letter said a takeover of Qualcomm could lead to a loss of USA influence in 5G standards, opening the door for Chinese firms like Huawei to dominate. The company was hoping that their current process of moving its headquarters back to the US would be enough to alleviate the concerns put forth by the federal government.

The prospect of Broadcom buying Qualcomm and its valuable 5G research reportedly spurred Intel to consider buying Broadcom.

Related news:

Hot News

isis-killer-beheading-video-story-top Araria will become 'terror hub': Giriraj Singh
Mar 16, 2018 - 01:09
Bharatiya Janata Party candidate Rinki Pandey defeated Sambhu Patel of the Congress, a RJD ally, by 15,000 votes in Bhabua . He said the Samajwadi Party and the BSP should fight the 2019 Lok Sabha polls together and urged the Congress to join them.

isis-killer-beheading-video-story-top URI trails Oklahoma 35-31 as NCAA Tournament gets underway
Mar 16, 2018 - 01:08
Young led the nation in scoring (27.4 points per game) and assists (8.8) while grabbing 3.9 rebounds for coach Lon Kruger. But if the Young family cared about conventional wisdom, Young would have never played for Oklahoma in the first place.

isis-killer-beheading-video-story-top Kendall Jenner Addresses Rumors That She Is Gay
Mar 16, 2018 - 01:07
She added that she understands why people think like that about her, because of that energy the model gives off. Kendall posed on the cover with a cockatoo, but she says the image wasn't taken exactly as it appeared.

isis-killer-beheading-video-story-top Poll outcome would be reviewed: UP CM Yogi Adityanath
Mar 16, 2018 - 01:06
The two leaders had won their seats by margins of over 3 lakh votes, with Phulpur going to the BJP for the first time. In Phulpur , cricketer Mohammad Kaif, who in 2014 contested as the Congress candidate, had secured 58,127 votes.

isis-killer-beheading-video-story-top Oklahoma to use nitrogen gas for executions
Mar 15, 2018 - 05:45
There's a nationwide shortage of an anesthetic component of a three-part mixture used in some lethal injections. State law also allows officials to opt for firing squads or the electric chair in executions.

isis-killer-beheading-video-story-top Google to ban advertisements on cryptocurrencies and related products
Mar 15, 2018 - 05:45
Google has updated its ads policy to confirm that cryptocurrency and ICO-related ads will no longer be accepted. But a Google spokeswoman said the Google's policies will try to anticipate workarounds like this.

Nate Solder to sign with the New York Giants
Mar 15, 2018 - 05:39
The New York Giants are expected to sign offensive tackle Nate Solder , a source told ESPN, confirming a report by NFL Network. Who Can Replace Solder To Protect Brady's Blind Side? The New England Patriots tough start to free agency continued Wednesday.

isis-killer-beheading-video-story-top Repairing Samsung Smartphones Becomes Easier
Mar 15, 2018 - 05:38
This won't help if you're using a budget Samsung phone, and it still means going to a third-party shop. Samsung says " most repairs" will be completed in two hours or less.

isis-killer-beheading-video-story-top Venus Williams moves into third round at BNP Paribas Open
Mar 14, 2018 - 06:23
Saturday night rain caused the suspension of one women's singles match and the postponement of another. I haven't played more than a year, my daughter was born, and now I need to go to her".

isis-killer-beheading-video-story-top Trump Blocks Biggest Tech Deal in History: Here's Why
Mar 14, 2018 - 06:22
This is the first time a current USA president has halted a deal over national security concerns before the deal was even agreed. Last year, Trump prohibited the $1.3bn purchase of Lattice Semiconductor Corporation by Canyon Bridge Capital Partner.

isis-killer-beheading-video-story-top Google co-founder Larry Page shows off his autonomous flying taxi
Mar 14, 2018 - 06:22
The company, Kitty Hawk , released a video and statement debuting the vehicle, called Cora, today (March 13). On Tuesday, regulators in New Zealand approved plans to develop and test the futuristic mode of transport.

isis-killer-beheading-video-story-top President Trump isn't seeing the real California
Mar 14, 2018 - 06:21
He added that Border Patrol had "done a fantastic job" in constructing the prototypes. Trump said he favored a fully concrete wall because it was the hardest to climb.

isis-killer-beheading-video-story-top The £3000 houses that can be downloaded and printed in 24 hours
Mar 14, 2018 - 06:21
The printers are capable of using any number of materials-including food, cement, and others-and creating a 3D structure. However, before these homes are built, ICON is planning to trial the model by 3D printing an office in Austin.

isis-killer-beheading-video-story-top Trump Personal Assistant John McEntee Fired, Will Join Re-Election Campaign
Mar 14, 2018 - 06:21
McEntee had been with Trump since the early days of his presidential campaign and served in the White House as a sort of body man. Neither the Journal nor the New York Times could specify what exactly the security issue was that led to McEntee's departure.

isis-killer-beheading-video-story-top Trump 'On the Same Wavelength' as Mike Pompeo on North Korea
Mar 14, 2018 - 05:59
Tillerson called on Saudi Arabia to ease off Qatar, but Trump took the Saudis' side and labeled Qatar a "funder of terrorism". Trump specifically cited the Iran nuclear deal, which he wanted to pull the USA out of against Tillerson's recommendations.