Qualcomm Broadcom merger stopped

Written by Mark Evans

13/03/2018

Donald Trump has blocked the takeover of US chipmaker Qualcomm on the grounds of national security.

The deal, one of the biggest in technology of recent years, would have seen Singapore-based Broadcom become the world's third-largest chip maker with only Intel and Samsung producing more.

Moreover, Qualcomm is perceived as a leader in the development of 5G wireless, placing it at the front of the advancing technology alongside Chinese rival Huawei – a situation that has led many to believe that the US is unwilling to potentially lose leadership to China, especially as Qualcomm is very committed to R&D whilst Broadcom has a reputation of sweating its assets, thus allowing Huawei to pull ahead.

But, of course, pure economic protectionism might also be a play, and the ‘security issues’ a convenient method of avoiding calling it that.