Tuesday March 06, 2018

U.S Calls Broadcom's Bid For Qualcomm a National Security Risk

Further complicating the hostile takeover of Qualcomm by Broadcom, the U.S government is saying that the deal could pose a national security risk, and is calling for a full investigation. The New York Times is reporting that the Committee on Foreign Investment in the United States, or CIFUS, notes that the risk is related to Broadcom's relationships with foreign entities.

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I can understand where the committee is coming from, having a foreign country have nearly complete control over your wireless communications could be a problem indeed. The article notes that this will likely be the death knell for the Broadcom takeover of Qualcomm.

In the letter from the Treasury official, the government said it was important to have a well-known and trusted company "hold the dominant role that Qualcomm does in the U.S. telecommunications infrastructure." Any loss of that competitiveness, the letter said, "would significantly impact U.S. national security."