Broadcom’s Hostile Takeover Attempt Of Qualcomm Considered A National Security Risk

The Singapore-based tech giant Broadcom has been trying to buy Qualcomm for some time now, even offering $117 billion, as a result. So far, the chip-making titan has been rebuffing the hostile takeover, but its Asian counterpart is not giving up. With the intervention of the Committee on Foreign Investment in the United States (CFIUS), however, it might have to.

The CFIUS, a panel of under the U.S. Treasury Department has apparently been conducting investigations into the matter of the hostile takeover of Qualcomm by Broadcom, The Wall Street Journal reports. The review is apparently going to end soon, but based on the data gathered so far, the investigators could recommend against the arrangement due to national security concerns.

The probe is triggered whenever a foreign entity tries to become the new owner of a company that is largely based and operates in the U.S., which fits this situation to a tee. If the acquisition presents a considerable security risk, the process is halted. In a letter sent to Broadcom, the CFIUS is telling the company that this is exactly what’s going on.

“(The) investigation has so far confirmed the national security concerns,” the panel told the company via a letter. “In the absence of information that changes CFIUS’s assessment of the national security risks posed by this transaction, CFIUS would consider taking further action, including but not limited to referring the transaction to the president for decision.”

As Reuters reports, one of the more influential figures to voice their support of Broadcom’s expanding influence in the U.S. is President Trump himself. In November of last year, the current POTUS described the tech giant as “one of the really great, great companies.” Clearly, the CFIUS thinks otherwise, though the final recommendation is still needed to make any kind of judgment on the matter.