Broadcom’s latest bid of $140bn for its rival chip-maker, Qualcomm, has been blocked by the US on the grounds of national security.
Qualcomm is one of the largest producers of chips and other mobile technology, and supplies components for iPhone and Android devices. Yet, the firm is also regarded for its research and development (R&D), particularly in the development of wireless 5G technology.
Yet, on Monday the Trump administration ordered to prevent the merger based on potential threats to national security – a decision that Qualcomm disagree with. These national security concerns largely come from the possibility that the takeover could weaken technology development like 5G in the US, while giving a competitive advantage to Chinese firms like Huawei.
However, others have said that Trump is using national security concerns to safeguard US economic interests – as a response to growing US imports. The Trump administration have used a similar justification to set tariffs on steel and aluminum imports – sparking tension with international trade partners.
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