As Broadcom Attempts Hostile Takeover of Qualcomm, US Officials Step In As Broadcom Attempts Hostile Takeover of Qualcomm, US Officials Step In – NTK Network

As Broadcom Attempts Hostile Takeover of Qualcomm, US Officials Step In

Broadcom, a Singapore-based chipmaker with ties to China, wants to buy the U.S.’s leading chipmaker.

By NTK Staff | 03.12.2018 @5:00pm

Late last year, Singapore-based chipmaker Broadcom announced it wanted to buy out U.S. chipmaker Qualcomm, just days after Broadcom claimed it would move its headquarters back to the U.S.

Qualcomm, the leading U.S. chipmaker and innovator of the forthcoming 5G wireless technology, spurned Broadcom’s multiple offers. But now, as Broadcom is getting more aggressive in its hostile takeover efforts, U.S. officials are reviewing the potential buy out.

Broadcom works closely with Chinese telecommunications company Huawei, and officials are worried a buy out of Qualcomm could cede the market of critical innovation like 5G to foreign competitors.

The Treasury’s Committee on Foreign Investment in the United States said Sunday it has confirmed the national security concerns it has raised about the deal and said it would consider further action, including referring the matter to President Donald Trump.

Broadcom is battling for board seats at Qualcomm, which has resisted its hostile takeover attempt. The government has said it is concerned about Qualcomm’s ability to maintain a competitive edge over China in mobile network development, citing Broadcom’s reputation for cutting research spending.

Officials from Broadcom are meeting with U.S. officials Monday to make their case.

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