Taiwan's industry association called for serious trial Broadcom acquisition of Qualcomm case

Set a micro-channel news, Taiwan Science Industry Park Science Industry Association pointed out yesterday through a news release, Broadcom has announced the acquisition of Qualcomm, if the merger success will win more than half of the global consumer electronics chip design market share of chip manufacturing, The bargaining power of those related industries such as packaging and telecommunications has greatly risen. This will seriously weigh down the profit margins of the Taiwanese industry and the future development of Taiwan's industries. In particular, the Association recommends to the Minister of Science and Technology, Chen Liangji, that the merger must be approved by the government and that the government should attach Conditions for the development of related industries in Taiwan, to help fight for reasonable conditions.

When Xu Chaojin, deputy director of the Ministry of Science and Technology, told a reporter from the Central News Agency, he said Qualcomm and Broadcom have cooperative relations with many domestic manufacturers. If they merge, they will indeed result in a lower flexibility for the domestic manufacturers to bargain in the bargain, resulting in a squeeze on profits.

However, he pointed out that both Qualcomm and Broadcom are non-Taiwan companies and the government can express their opinions, but I am afraid there is no right of refusal. Issues such as the Ministry of Economic Affairs and the Fair Trade Commission need to be clarified.

Zhang Zhiyuan, secretary-general of the Science Parks Association, pointed out that the merger of Broadcom and Qualcomm has not yet been finalized. However, if the merger is successful, Broadcom's future bargaining power over such industries as chip manufacturing, packaging and telecommunications will greatly increase. Profitable space and Taiwan's industrial development.

Zhang Zhiyuan said that the government should address the impact of the merger on the domestic industry. Expect the merger to go through with the consent of the government. The government should also attach conditions when agreeing to help relevant domestic manufacturers fetch reasonable conditions.

Peng Shaojin, vice chairman of Taiwan's Fair Society, said when interviewed by the Central News Agency, Fair will pay close attention to the development of mergers between Broadcom and Qualcomm. When the combination of businesses meets the review threshold, the fair will review the merger.

First of all, in the combined type, Peng pointed out that according to the Fair Trade Law, there are five kinds of preconditions, including mergers and acquisitions, 1/3 shareholding, transferee or lease, joint operation or entrusted operation, and direct or indirect control over business operations or personnel Appointment and removal.

Secondly, on the threshold of the review, Peng Shaojin said that according to Article 11 Paragraph 1 of the Fairtrade Law, when the businesses are combined, the market share of a company with a market share of over one-third in Taiwan or one quarter of the companies participating in the merger, Or annual global sales of NT 40 billion yuan, have to advance and fair will apply.