Broadom withdraws plans to buy Qualcomm after Trump executive order
Broadcom is no longer pursuing plans to buy Qualcomm after Trump issued an executive order blocking the $117 billion takeover proposal over fears the deal would "impair the national security of the United States."
"Although we are disappointed with this outcome, Broadcom will comply with the Order," the Singapore-based company that's currently in the process of redomiciling to the U.S., said in a press release on Wednesday.
SEE ALSO:Qualcomm's new X24 LTE modem can reach a ridiculously fast 2 gbpsBroadcom has been under investigation by the Committee on Foreign Investment in the United States (CFIUS) over concerns the company's buyout of Qualcomm could stifle the chipmaker's development of 5G technologies.
Qualcomm is currently one of the largest U.S.-based tech companies investing in research and development of 5G. Had Broadcom purchased it, CFIUS says the acquisition could have led to the U.S. falling behind and China leaping ahead in the race to influence the infrastructure that will connect everything from phones to a network of self-driving cars.
"Reduction in Qualcomm's long-term technological competitiveness and influence in standard setting would significantly impact U.S. national security," CFIUS warned. "This is in large part because of a weakening of Qualcomm's position would leave an opening for China to expand its influence on the 5G standard-setting process."
CFIUS also notes that Chinese tech companies such as Huawei have already played a key role in developing 5G, and it would be unwise to let it or other Chinese telecoms have such a firm foothold in such a crucial upcoming technology.
Of course, these concerns about national security are all mostly bogus.
"Given well-known U.S. national security concerns about Huawei and other Chinese telecommunications companies, a shift to Chinese dominance in 5G would have substantial negative security consequences for the United States."
Of course, these concerns about national security are mostly bogus. Just as there's no proof that Huawei phones are being used as espionage devices by the Chinese government to spy on Americans, there's no publicly-shared evidence that supports claims that Broadcom's now-failed buyout of Qualcomm would've been a risk to national security or would've decelerated American 5G development. Heck, Broadcom's not even a Chinese company -- it's currently headquartered in Singapore.
Plus, Broadcom's move to redomicile to the U.S. (which is still happening) and plans to spend $1.5 billion to train American engineers suggests it's doubling down on American investment.
Trump's successful move to kill the deal and CIFUS's intervention, however, doesn't just end Broadcom's bid to buy Qualcomm, but could also have a lasting effect on other American companies looking for international growth.
What's to stop Trump or the CFIUS from barring other companies from considering acquisitions from non-U.S.-based companies? The whole thing is pure protectionism and could lead to retaliation from other countries. Chinese regulators could just as easily block an American company from trying acquire a Chinese-based company over concerns for its own national security.
And it's not just China that could give shut American businesses out. European-based companies could do the same, too. The Broadcom-Qualcomm deal is dead today, but who what could happen tomorrow and is way more worrisome.
Featured Video For You
相关文章
14 Heists, Robberies, and Other Great Capers
In the dark hours of the morning on Monday, November 25, 2019, five masked men broke into the Green2024-09-23- 本报讯我市2020年度机关事业单位技术工人技术等级考核及技师职务考评于9月底全面完成,经过理论考试、实操考核和技能水平综合评审,全市共236人获得普级资格,其中中级66人,高级96人、技师74人。为做2024-09-23
Amazon, Google, Microsoft and more have pulled out of CES 2022
Back in April, the Consumer Technology Association (CTA), the association that puts on the Consumer2024-09-23- 根据国际医学杂志《柳叶刀》发布的最新数据显示,中国有9000万肥胖人群,其中1200万属于重度肥胖,居全球首位。世界卫生组织曾指出,超重和肥胖是全球导致死亡的第五大风险。近日,雅安市人民医院四川大学华2024-09-23
Gastro Obscura's Guide to Where to Eat in Nashville
Every month, thousands of bachelorette parties don their TEAM BRIDE sashes and descend on Nashville.2024-09-23How (and why) we grieve on Instagram. It's complicated.
Grief and mourning are complicated emotions to navigate, made even more so when combined with the ev2024-09-23
最新评论