US President Donald Trump blocked Singaporean microchip maker Broadcom Ltd's proposed takeover of Qualcomm Inc, and said in a presidential order that there is "credible evidence" that the deal threatens national security.
Varaiya said he expects Qualcomm to focus on developing its 5-G technology, and its acquisition of NXP Semiconductors, to boost its performance.
The Dow Jones industrial average dropped almost 200 points, or 0.68%, Tuesday as Wall Street processed President Donald Trump's blocking of Broadcom's proposed takeover of a U.S. competitor and a surprise change of the US' top diplomat. Its first offer was rejected by Qualcomm's board, as the $70 per share Broadcom was offering wasn't enough to tempt a sale. The US government is anxious that Broadcom would slowdown Qualcomm's 5G R&D spending, a move that would solidify Huawei's lead and favor China.
"Under the terms of the presidential order, all of Broadcom's director nominees are also disqualified from standing for election as directors of Qualcomm", the California-based company said in a statement.
Qualcomm and a host of other big technology companies are racing to build a next-generation nationwide network known as "5G" with download speeds that could be 100 times faster than what most consumers experience now on their wireless service.
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Zhong said China has the ability to deal with "any kind of challenges" and the country will "decisively" protect the interests of the state and its people.
The Broadcom bid will free up Qualcomm to improve its own performance.
Broadcom said in a statement released today: "Although we are disappointed with this outcome, Broadcom will comply with the Order". It sees 5G as a fresh start to make a bigger mark in the mobile world, but likely didn't want to compete against the combined might of Broadcom and Qualcomm. Heck, Broadcom's not even a Chinese company - it's now headquartered in Singapore. Lawmakers accused the company of having close links to Beijing, and said it posed a threat to U.S. national security.
The company initially intended on trying to change the order, saying that it did not agree with the USA government's belief that US national security was at risk if the acquisition was permitted, but it was short-lived.
What do you think about the decision from the White House and Broadcom's subsequent dropping of their acquisition attempt of Qualcomm? This means that Broadcom will still be moving its headquarters to the United States, making it more of presence domestically.