Singapore chip maker Broadcom acquisition of Qualcomm's deal, suffered a major setback, the U.S. government announced that the acquisition of foreign capital affect the national security, the U.S. Foreign Investment Commission has launched an investigation. In addition to international security, the U.S. government is very worried that if Qualcomm is acquired by a foreign company, the United States will lose its leading position in the 5G field. China will rely on Huawei and become the leader.
Earlier, the U.S. Foreign Investment Commission had asked Qualcomm to postpone a general meeting of shareholders to start a probe into whether it would undermine U.S. national security. The U.S. Treasury Department also expressed concerns about the U.S. government in a letter on Monday.
What needs to be pointed out is that Broadcom, which is currently proposed to be acquired, is actually Anwarco Singapore based in Singapore. The company was born out of Hewlett-Packard's semiconductor business and has since made countless mergers and acquisitions and expanded its business scale. , Avago acquired Broadcom, a small chip maker in the United States, adopted the name of each other, many because of Broadcom's name, many mistaken for Broadcom as a U.S. company.
Qualcomm mergers and acquisitions by a foreign company, also triggered a high degree of public opinion in the United States.According to headquarters of Qualcomm 's San Diego United Tribune reported that the Web site reported that the US Treasury Department, Qualcomm acquisition will undermine the United States in the field of 5G status. The Ministry of Finance believes that if Qualcomm is acquired by foreign capital, Chinese companies including Huawei and China will have the leadership of 5G.
In a letter sent to Qualcomm and Broadcom, the Ministry of Finance wrote: 'Although the United States currently dominates the setting of communications standards, as a result of hostile takeovers, China will actively compete and fill the gap left by Qualcomm. '
In the field of telecom equipment, China’s Huawei is one of the world’s top three telecom equipment manufacturers (the other two are Nokia and Ericsson), with a high market share and competitiveness.
In the past, Huawei had provided telecommunications equipment in many countries around the world to build a local 4G mobile communications network, and Huawei naturally had to occupy the beachhead in the 5G technological revolution. Huawei's strength has also sparked US anxiety over the past few months, when Huawei planned to sell high-end mobile phones in the United States, AT & T canceled its cooperation with Huawei under pressure from the United States.
This time if Qualcomm was acquired Broadcom, then Qualcomm will become a foreign company, the dominant position of the United States 5G will be shaken, China will come from behind, so I am afraid this acquisition will be deadlocked.