Defense & Intelligence Policy, Business and Technology

Qualcomm Takeover Chances Dim on U.S. Warning Over Security Risk

Bloomberg: Broadcom Ltd.’s hostile takeover attempt of Qualcomm Inc. could pose a national security risk because of Qualcomm’s leadership in developing critical semiconductor technology, according to the U.S. Treasury Department.

Qualcomm’s sale to Singapore-based Broadcom could hurt the chipmaker’s competitiveness by reducing research and development, which would threaten U.S. security, Treasury said in a March 5 letter released by Qualcomm Tuesday. Harm to Qualcomm’s innovation would allow China to expand its influence in key wireless technology, the government said.

The U.S. "has identified potential national security concerns that warrant a full investigation of the proposed transaction," Treasury said. "Articulation of the potential national security concerns, in significant part, is classified."

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