Business Daily Kenya:
US President Donald Trump has blocked a planned takeover of chipmaker Qualcomm by Singapore-based rival Broadcom on grounds of national security. His order cited “credible evidence” which the proposed $140 billion (Sh4.2 trillion)) deal “threatens to impair the national security of the US”. There were concerns the takeover could have led to China pulling ahead inside development of 5G wireless technology.
The deal could have been the biggest technology sector takeover on record. A takeover of Qualcomm by Broadcom could have created the earth’s third-largest maker of microchips, behind Intel along with Samsung.
The chipmaking sector is usually in a race to develop chips for the latest 5G wireless technology along with Qualcomm is usually considered to be a leader in This kind of field, followed by Broadcom along with China’s telecoms giant Huawei. Analysts say Qualcomm is usually highly regarded for its commitment to research along with development (R&D), particularly inside field of 5G technology.
Huawei is usually equally committed to R&D inside area. However, Broadcom is usually better known for selling assets along with growing through acquisitions, along with deemed to be weaker on R&D.
With This kind of in mind, analysts have said a deal between Qualcomm along with Broadcom could have given Huawei the chance to take over the top spot in years to come – a situation US politicians wanted to prevent given their ongoing security concerns around Chinese telecom firms doing business with US carriers. Others have said Trump’s decision was more about competitiveness than security concerns. –BBC
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Trump blocks chip firm acquisition