Mubasher: US President Donald Trump has blocked an offer from Singapore-based chipmaker Broadcom to acquire telecommunications firm Qualcomm for $117 billion due to national security risks.
If implemented, the deal would have marked the biggest-ever takeover in the technology sector, created the third largest chipmaker behind Intel and Samsung, and given China the opportunity to dominate the global telecommunication industry in the coming period.
"There is credible evidence that leads me to believe that Broadcom might take action that threatens to impair the national security of the United States," Trump said late Monday.
Trump’s executive order, which was issued based on a recommendation from the Congress’ Foreign Investment Committee, came hours after Broadcom CEO Hock Tan met officials from the US Department of Defense as the last attempt to secure the deal.
In response, Broadcom stated that it "strongly disagrees” that its bid would pose risks to US national security, while Qualcomm did not comment on Trump's block.