Deals
Qualcomm Takeover Chances Dim on U.S. Warning About Security
- Treasury cites Qualcomm’s innovation, Pentagon contracts
- Security panel is reviewing Broadcom takeover bid for threat
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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, setting up a potentially insurmountable hurdle to getting a deal done.
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.