{"id":14949,"date":"2018-03-12T16:49:00","date_gmt":"2018-03-13T00:49:00","guid":{"rendered":"http:\/\/associatednews.info\/content\/president-trump-blocks-broadcoms-takeover-of-qualcomm-citing-national-security\/"},"modified":"2018-03-12T16:49:00","modified_gmt":"2018-03-13T00:49:00","slug":"president-trump-blocks-broadcoms-takeover-of-qualcomm-citing-national-security","status":"publish","type":"post","link":"https:\/\/associatednews.info\/content\/president-trump-blocks-broadcoms-takeover-of-qualcomm-citing-national-security\/","title":{"rendered":"President Trump Blocks Broadcom&#039;s Takeover Of Qualcomm, Citing National Security"},"content":{"rendered":"<p><span style=\"font-style:italic;font-size:16px\">By  <a target=\"_blank\" href=\"https:\/\/www.npr.org\/sections\/thetwo-way\/2018\/03\/12\/593018607\/president-trump-blocks-broadcoms-takeover-of-qualcomm-citing-national-security?utm_medium=RSS&amp;utm_campaign=business\">Colin Dwyer<\/a><\/span>  <\/p>\n<div class=\"ftpimagefix\" style=\"float:left\"><a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/www.npr.org\/sections\/thetwo-way\/2018\/03\/12\/593018607\/president-trump-blocks-broadcoms-takeover-of-qualcomm-citing-national-security?utm_medium=RSS&amp;utm_campaign=business\"><img decoding=\"async\" width=\"150\" src=\"https:\/\/media.npr.org\/assets\/img\/2018\/03\/12\/gettyimages-460993663_wide-7da58d17264f6c785ec67b3d4223ad5ac9ec5585-s1100-c15.jpg\" alt=\"Qualcomm.\"><\/a><\/div>\n<div>\n<div>\n<div><a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/media.npr.org\/assets\/img\/2018\/03\/12\/gettyimages-460993663_wide-7da58d17264f6c785ec67b3d4223ad5ac9ec5585-s1200.jpg\">Enlarge this image<\/a><\/div>\n<\/div>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<p><span><\/p>\n<p>        Justin Sullivan\/Getty Images<\/p>\n<p>    <\/span><\/div>\n<\/div>\n<p>In an unusual step, President Trump has signed an executive order blocking Broadcom&#8217;s $117 billion bid to buy Qualcomm. The order released Monday cited &#8220;credible evidence&#8221; that led Trump to believe the Singapore-based Broadcom, in purchasing America&#8217;s largest mobile chipmaker, &#8220;might take action that threatens to impair the national security of the United States.&#8221;<\/p>\n<p>&#8220;The proposed takeover of Qualcomm by the Purchaser is prohibited,&#8221; the president <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/presidential-order-regarding-proposed-takeover-qualcomm-incorporated-broadcom-limited\/\">said in his order<\/a>, &#8220;and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited.&#8221;<\/p>\n<p>Trump said his decision was informed by a recommendation from the Committee on Foreign Investment in the United States, an interagency panel that \u2014 <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/www.treasury.gov\/resource-center\/international\/Pages\/Committee-on-Foreign-Investment-in-US.aspx\">in its own words<\/a> \u2014 investigates &#8220;transactions that could result in control of a U.S. business by a foreign person.&#8221; The group evaluates these deals according to their possible effects on national security.<\/p>\n<p>The CFIUS had already openly suggested its concerns with the massive tech merger. Aimen Mir, a top Treasury Department official serving on CFIUS, <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/www.qcomvalue.com\/wp-content\/uploads\/2018\/03\/Letter-from-Treasury-Department-to-Broadcom-and-Qualcomm-regarding-CFIUS.pdf\">sent a letter earlier this month<\/a> voicing those concerns to attorneys representing both companies.<\/p>\n<aside>\n<div><\/div>\n<\/aside>\n<p>As NPR&#8217;s Alina Selyukh reports, those concerns center especially on &#8220;the future of mobile connections,&#8221; where Qualcomm has been an industry leader.<\/p>\n<p>&#8220;Countries around the world have been racing to develop technology for the new generation of wireless called 5G,&#8221; she explains. &#8220;It will power all the devices that are starting to connect to the Internet \u2014 like smart home speakers and even cars.&#8221;<\/p>\n<p>Though Broadcom is based in Singapore, the principal worry rests with China. If Qualcomm&#8217;s &#8220;technological leadership&#8221; diminishes, Mir said in his March 5 letter, Chinese tech companies stand to gain in the race to develop 5G.<\/p>\n<p>&#8220;Reduction in Qualcomm&#8217;s long-term technological competitiveness and influence in standard setting would significantly impact U.S. national security,&#8221; Mir wrote. &#8220;This is in large part because a weakening of Qualcomm&#8217;s position would leave an opening for China to expand its influence on the 5G standard-setting process.&#8221;<\/p>\n<p>He also noted that Department of Defense programs rely on access to Qualcomm products.<\/p>\n<p>This weekend, before Trump&#8217;s order, Mir wrote the same lawyers again, <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/www.qcomvalue.com\/wp-content\/uploads\/2018\/03\/Letter-from-Treasury-Department-to-Broadcom-and-Qualcomm-regarding-CFIUS-03.11.18.pdf\">this time to note<\/a> that the CFIUS investigation &#8220;has so far confirmed the national security concerns&#8221; identified in his earlier letter.<\/p>\n<p>Broadcom, for its part, had argued earlier Monday \u2014 before the president&#8217;s order \u2014 that the national security fears were unwarranted because it plans to redomicile to the U.S. by early April.<\/p>\n<p>&#8220;Broadcom, which is in all important respects a U.S. company, has been repeatedly approved by CFIUS in its previous acquisitions of U.S. companies,&#8221; the company <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/investors.broadcom.com\/phoenix.zhtml?c=203541&amp;p=irol-newsArticle&amp;ID=2337446\">said in its statement<\/a>, &#8220;and has always engaged productively with CFIUS to ensure U.S. national security is protected.&#8221;<\/p>\n<p>Trump disagreed with this line of reasoning, however. And he said he has directed Treasury Secretary Steven Mnuchin, to send a copy of his order blocking the merger to Qualcomm and Broadcom.<\/p>\n<p><strong><a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/\">Let&#8217;s block ads!<\/a><\/strong> <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\">(Why?)<\/a><\/p>\n<p>Source:: <a href=\"https:\/\/www.npr.org\/sections\/thetwo-way\/2018\/03\/12\/593018607\/president-trump-blocks-broadcoms-takeover-of-qualcomm-citing-national-security?utm_medium=RSS&amp;utm_campaign=business\" target=\"_blank\" title=\"President Trump Blocks Broadcom&#039;s Takeover Of Qualcomm, Citing National Security\" rel=\"nofollow\">https:\/\/www.npr.org\/sections\/thetwo-way\/2018\/03\/12\/593018607\/president-trump-blocks-broadcoms-takeover-of-qualcomm-citing-national-security?utm_medium=RSS&amp;utm_campaign=business<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"ftpimagefix\" style=\"float:left\"><a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/www.npr.org\/sections\/thetwo-way\/2018\/03\/12\/593018607\/president-trump-blocks-broadcoms-takeover-of-qualcomm-citing-national-security?utm_medium=RSS&amp;utm_campaign=business\"><img decoding=\"async\" width=\"150\" src=\"https:\/\/media.npr.org\/assets\/img\/2018\/03\/12\/gettyimages-460993663_wide-7da58d17264f6c785ec67b3d4223ad5ac9ec5585-s1100-c15.jpg\" alt=\"Qualcomm.\"><\/a><\/div>\n<div>\n<div>\n<div><a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/media.npr.org\/assets\/img\/2018\/03\/12\/gettyimages-460993663_wide-7da58d17264f6c785ec67b3d4223ad5ac9ec5585-s1200.jpg\">Enlarge this image<\/a><\/div>\n<\/div>\n<div>\n<div>\n<div><\/div>\n<\/div>\n<p><span><\/p>\n<p>        Justin Sullivan\/Getty Images<\/p>\n<p>    <\/span><\/div>\n<\/div>\n<p>In an unusual step, President Trump has signed an executive order blocking Broadcom&#8217;s $117 billion bid to buy Qualcomm. The order released Monday cited &#8220;credible evidence&#8221; that led Trump to believe the Singapore-based Broadcom, in purchasing America&#8217;s largest mobile chipmaker, &#8220;might take action that threatens to impair the national security of the United States.&#8221;<\/p>\n<p>&#8220;The proposed takeover of Qualcomm by the Purchaser is prohibited,&#8221; the president <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/www.whitehouse.gov\/presidential-actions\/presidential-order-regarding-proposed-takeover-qualcomm-incorporated-broadcom-limited\/\">said in his order<\/a>, &#8220;and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited.&#8221;<\/p>\n<p>Trump said his decision was informed by a recommendation from the Committee on Foreign Investment in the United States, an interagency panel that \u2014 <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/www.treasury.gov\/resource-center\/international\/Pages\/Committee-on-Foreign-Investment-in-US.aspx\">in its own words<\/a> \u2014 investigates &#8220;transactions that could result in control of a U.S. business by a foreign person.&#8221; The group evaluates these deals according to their possible effects on national security.<\/p>\n<p>The CFIUS had already openly suggested its concerns with the massive tech merger. Aimen Mir, a top Treasury Department official serving on CFIUS, <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/www.qcomvalue.com\/wp-content\/uploads\/2018\/03\/Letter-from-Treasury-Department-to-Broadcom-and-Qualcomm-regarding-CFIUS.pdf\">sent a letter earlier this month<\/a> voicing those concerns to attorneys representing both companies.<\/p>\n<aside>\n<div><\/div>\n<\/aside>\n<p>As NPR&#8217;s Alina Selyukh reports, those concerns center especially on &#8220;the future of mobile connections,&#8221; where Qualcomm has been an industry leader.<\/p>\n<p>&#8220;Countries around the world have been racing to develop technology for the new generation of wireless called 5G,&#8221; she explains. &#8220;It will power all the devices that are starting to connect to the Internet \u2014 like smart home speakers and even cars.&#8221;<\/p>\n<p>Though Broadcom is based in Singapore, the principal worry rests with China. If Qualcomm&#8217;s &#8220;technological leadership&#8221; diminishes, Mir said in his March 5 letter, Chinese tech companies stand to gain in the race to develop 5G.<\/p>\n<p>&#8220;Reduction in Qualcomm&#8217;s long-term technological competitiveness and influence in standard setting would significantly impact U.S. national security,&#8221; Mir wrote. &#8220;This is in large part because a weakening of Qualcomm&#8217;s position would leave an opening for China to expand its influence on the 5G standard-setting process.&#8221;<\/p>\n<p>He also noted that Department of Defense programs rely on access to Qualcomm products.<\/p>\n<p>This weekend, before Trump&#8217;s order, Mir wrote the same lawyers again, <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/www.qcomvalue.com\/wp-content\/uploads\/2018\/03\/Letter-from-Treasury-Department-to-Broadcom-and-Qualcomm-regarding-CFIUS-03.11.18.pdf\">this time to note<\/a> that the CFIUS investigation &#8220;has so far confirmed the national security concerns&#8221; identified in his earlier letter.<\/p>\n<p>Broadcom, for its part, had argued earlier Monday \u2014 before the president&#8217;s order \u2014 that the national security fears were unwarranted because it plans to redomicile to the U.S. by early April.<\/p>\n<p>&#8220;Broadcom, which is in all important respects a U.S. company, has been repeatedly approved by CFIUS in its previous acquisitions of U.S. companies,&#8221; the company <a target=\"_blank\" rel=\"nofollow\" href=\"http:\/\/investors.broadcom.com\/phoenix.zhtml?c=203541&amp;p=irol-newsArticle&amp;ID=2337446\">said in its statement<\/a>, &#8220;and has always engaged productively with CFIUS to ensure U.S. national security is protected.&#8221;<\/p>\n<p>Trump disagreed with this line of reasoning, however. And he said he has directed Treasury Secretary Steven Mnuchin, to send a copy of his order blocking the merger to Qualcomm and Broadcom.<\/p>\n<p><strong><a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/\">Let&#8217;s block ads!<\/a><\/strong> <a target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/blockads.fivefilters.org\/acceptable.html\">(Why?)<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-14949","post","type-post","status-publish","format-standard","hentry","category-business-2"],"_links":{"self":[{"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/posts\/14949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/comments?post=14949"}],"version-history":[{"count":0,"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/posts\/14949\/revisions"}],"wp:attachment":[{"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/media?parent=14949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/categories?post=14949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/associatednews.info\/content\/wp-json\/wp\/v2\/tags?post=14949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}