President Trump ordered the Broadcom company that is located in Singapore to cancel or reject its offer of $117 billion dollars for Qualcomm company which could be one of the successful deals in the technology world.
President Trump said that the point behind canceling this deal is that it will provide protection to the national security of the United States and proceeding with the deal would affect the security since the other company is located Broadcom in Asia which is known as one of the companies that is competing against American companies such as “Qualcomm ” The foreign investment in the United States, or what is called CFIUS had to work on Trump’s order quickly considering that anything said by president Trump cannot be ignored or rejected.
President Trump did not specify its national security concerns, but there was a letter sent to both companies saying that it is about the future of Qualcomm that could be destroyed by the other company “Broadcom”. According to the Washington post after analyzing the situation, “If that happened, the American company would be less dominant comparing to the other company since it will take its place.” If you pay attention to the world of technology around you these days, you will notice that Qualcomm’s technology is everywhere since each device will contain a tiny computer chip in it.
President Trump also announced that there should be rules must be followed when importing both steel and aluminum because that could be another reason threatening the national security in the United States. This step affected the world of technology and several countries such as China, Germany, and South Korea. Also, this deal was not the only deal that got canceled or stopped by president Trump.
A deal of $1.3 billion between Lattice Semiconductor company located in Portland and a private equity firm that is taking place in Beijing. One of the reasons CFIUS had to solve this problem quickly is what Broadcom revealed as one it is future plans which is to become an American entity. A person spoke on the condition of anonymity saying that, “ Making this deal could end the world of technology in America.” Broadcom s said in a statement that the deal has nothing to do with the national security of the United States.
Qualcomm is planning to create what is called “5G” which could be the next generation nationwide network. And what makes it different is the speed that would be 100 faster than it is right now. In addition to the ability to watch a movie with a high quality, use wireless services, and developing the connection at work and home.
