The president of the United States, Donald Trump has obstructed a planned takeover of Qualcomm, the chipmaker, bit its rival Broadcom based in Singapore and had cited the grounds as national security.
Donald Trump’s order stated “credible evidence” and that the $140bn deal which was proposed was a threat to the U.S national security.
There were fears that the takeover would have resulted in China taking the lead in 5G wireless technology development. The deal would have become the most significant takeover on record in the technology sector.
If Broadcom had succeeded in taking over Qualcomm, it would have produced the third-largest microchip producer worldwide behind Samsung and Intel.
The chipmaking sector is a competition to produce the most recent 5G wireless technology & Qualcomm is seen to be leading this field closely followed by Huawei which is China and Broadcom’s telecoms giant.
Analysts’ state that Qualcomm is regarded highly as a result of how committed it is to R & D or Research and Development especially in the sector of 5G technology. Huawei also has an equal commitment in this aspect.
Nonetheless, Broadcom is known better for the sales of assets and rising through acquisitions and is said to not as strong in R&D
.With this in consideration, analysts have stated that a deal between Broadcom and Qualcomm would have provided Huawei with the possibility to take the leading spot in the coming years. This was the scenario as politicians in the U.S aimed to avert given their present security worries around telecom firms from China carrying our businesses with carriers from the US.
Others have stated that the decision from Trump was less about security matters and more about competitiveness.
Others have said Mr. Trump’s decision had more to do with competitiveness as opposed to security concerns. Mario Morales, who plays the role of the vice president of enabling technologies stated that considering the political environment in the US currently, as well as other regions in the globe, everyone has a more reserved view on acquisitions and mergers and is ensuring their domains are protected.
Analysis: Andrew Walker, Correspondent of BBC economics
Is there a sequence growing in the use of national security concerns by President Trump as an international economic weapon?
Possibly, but Barack Obama, his predecessor did utilize the issue in the obstruction of takeovers one of which includes an attempt for technology acquisition by an investment fund in China.
The potential acquirer in this scenario is not Chinese, but the concerns stated by the Foreign Investment Committee had to do with the creation of space for an enhanced Chinese presence in the area of 5G wireless technology.
Additionally, security concerns have also been invoked by Mr. Trump in adding new tariffs to imported aluminum and steel.
There are lots of individuals who are in doubt. The commissioner for trade in the EU, Cecilia Mailstorm stated that it was a safeguard in disguise which is a response to a rise in imports which has an impact on the industries in the country.
分析师表示，高通和博通如达成协议可以让华为有机会在未来几年内占据行业榜首位置 - 鉴于美国政界人士对华为与美国运营商开展业务一直存在安全担忧，这是他们一直希望阻止的。
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