In response, the Foreign Investment Committee of the United States issued an external statement that Broadcom’s cost-cutting measures in R&D budgets would threaten national security. This sounds more like a research report issued by a securities company.
We know that Broadcom is headquartered in Singapore, but it hopes to become a US company registered in the United States, Delaware. Despite this, US legislators still worry that if Qualcomm is acquired, it will force the US to have a difficult position in 5G development. Enemy Asian company.
Today, Broadcom gave a counterattack, accusing Qualcomm of having links with Chinese companies and the Chinese government, which mentioned Huawei.
This is a sensitive issue for the United States, because the government has warned US consumers to disable Huawei devices. At that time, lawmakers said that Huawei’s devices may transmit data to the Chinese government. As early as 2012, there were rumors that Huawei and ZTE were Chinese. The government spies in the United States.
In an information sheet published today by Broadcom, the company used a news from The New York Times. Quoting Qualcomm’s executive vice president Cristiano Amon and the SEC spokesman, he claimed that Xiaolong Mobile Chips is working with the Chinese government and will 'Long-term commitment to the development of China's mobile industry'.
This information sheet also includes a statement from the US Securities Regulatory Commission, which states that Qualcomm must pay 7.5 million US dollars (equivalent to approximately RMB 47.5 million) before it can withdraw allegations that Qualcomm hired relatives of Chinese government officials (in violation of the “Opposition” Law). (FCPA)).
Broadcom is still bidding for Qualcomm for US$117 billion (equivalent to approximately RMB 714 billion) and is trying to control Qualcomm’s board through a proxy battle.
The original 11 board members' votes will be held on March 6th, but the Foreign Investment Committee requires a delay of 30 days, so the vote will be held on April 4. However, if the committee wants to stop the transaction, the voting of the board of directors may not matter at all. .
And Broadcom’s move is also to show to the Foreign Investment Committee and other U.S. regulators that Broadcom is not the only company that has a relationship with a foreign company.