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    The logo of chipmaker Qualcomm Inc is pictured on its building in San Diego, California, U.S. July 22, 2008

    Biggest Tech Deal Ever Failed: Trump Blocks Broadcom's $117 Billion Merger Bid

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    WASHINGTON (Sputnik) - US President Donald Trump in an executive order said the government prohibits Singapore-based semiconductor technologies provider Broadcom from acquiring Qualcomm because the merger would threaten US national security.

    "The proposed takeover of Qualcomm by the Purchaser [Broadcom] is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited," the order said on Monday.

    There is credible evidence, the order said, that through exercising control of Qualcomm, Broadcom "might take action that threatens to impair the national security of the United States."

    According to the US-based media reports, the merger would have put one of the largest mobile chipmakers in the US in the hands of an asia-based company, a region that has been racing against American companies over years to develop the next generation of mobile technology.

    The Trump Adminstration's move reportedly shows the high value of the US on maintaining the domestic edge in the technological development.

    Last week, The Washington Post reported that the US Committee on Foreign Investment has sent a letter to the attorneys of the two companies saying it was concerned about the alleged development at Qualcomm might atrophy under Broadcomm's direction. If that happened, China's Huawei, a rival to Qualcomm and a major mobile hardware producer, might reportedly gain dominance on the world's market.

    Related:

    Qualcomm Slapped With $1.2 Billion Fine by EU Anti-Trust Probe
    Qualcomm Laying Off Staff After Requesting Permits for Foreign Workers
    China Slaps Record Fine on US Chipmaker Qualcomm
    Tags:
    merger, deal, block, Committee on Foreign Investment in US, Broadcom, Trump administration, Qualcomm, Donald Trump, United States
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