The deal between Broadcom and Qualcomm isn’t taking place. The Singapore based company was planning to acquire an American multinational semiconductor and telecommunications equipment company for $177 billion. However, it was going to be one of the largest business acquisitions in the history.
Donald Trump blocked the deal
On Monday, U. S. president Donald Trump blocked the deal citing national security concern. According to the Whitehouse official site, “upon review of a recommendation from the Committee on Foreign Investment in the United States and consideration, as appropriate, of the factors set forth in the Defense Production Act of 1950, as amended, the President has made” some specific orders.
In fact, the deal was under scrutiny by a national-security panel called the Committee on Foreign Investment in the United States or CFIUS. Moreover, this is the organization which advises Trump.
However, Bloomberg reported, “this decision hangs a huge ‘not-for-sale’ sign on just about every American semiconductor firm, said Scott Kennedy, who studies China’s economic policy at the Center for Strategic & International Studies in Washington. A Chinese entity doesn’t need to be anywhere near a transaction now in semiconductors for the deal to be nixed”.
This decision highlights the growing bitterness between the United States and the rest of the world. Experts say, this decision just reflects Trump’s unpopular “America first” policy. And it emphasizes the country’s growing fears of cyberwar and spying.