Trump blocks Broadcom's acquisition of Qualcomm on national security grounds

By midian182 · 28 replies
Mar 13, 2018
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  1. Singapore-based Broadcom’s long-running attempts to purchase rival chipmaker Qualcomm could be at an end. Yesterday, President Trump issued an order blocking the acquisition and anything “substantially equivalent” over claims it could “impair the national security” of the US.

    Broadcom has made several offers to buy Qualcomm since last November but has continually been turned down. The proposed deal had come under scrutiny from the Committee on Foreign Investment in the United States (CFIUS), who also said the takeover would pose a security risk. CFIUS warned that if Broadcom purchased Qualcomm, it would weaken the US firm's position against Chinese rivals, thereby allowing companies such as Huawei to dominate the 5G wireless industry, leaving America behind.

    Based on CFIUS’s recommendations, Trump has issued an order under the Defense Protection Act of 1950 prohibiting any merger or acquisition.

    “There is credible evidence that leads me to believe that Broadcom Limited, a limited company organized under the laws of Singapore (Broadcom) [...] through exercising control of Qualcomm Incorporated (Qualcomm), a Delaware corporation, might take action that threatens to impair the national security of the United States," reads a White House statement.

    Trump’s order also disqualifies all 15 of Broadcom's proposed candidates for Qualcomm's board from standing for election.

    Broadcom had hoped plans to move its headquarters from Singapore to the US would allow the deal to go through. “US national security concerns are not a risk to closing, as Broadcom never plans to acquire Qualcomm before it completes redomiciliation,” it said, in a statement. As Trump’s order says the firms should “permanently abandon the proposed takeover,” it appears that relocating to the US isn’t going to help Broadcom’s cause.

    In a statement yesterday, Broadcom said it is reviewing the order and "strongly disagrees" that its proposed acquisition raises any national security concerns.

    Permalink to story.

  2. misor

    misor TS Evangelist Posts: 1,296   +252

    Wow. the look at the power of the executive department!

    now, where is the power to regulate gpu prices and fight illegal profiteering?
    oranuro and JaredTheDragon like this.
  3. Theinsanegamer

    Theinsanegamer TS Evangelist Posts: 949   +966

    Nothing illegal about selling a product for what the market will bear. Unethical? Depends on the industry. Illegal? Nope.

    Especially as GPUs are not required for, well, anything really. Cant play video games? There is this thing called the OUTSIDE. There is a lot to do out there. You should try it.

    We dont need government regulation on friggin GPUs. That is an obscene waste of resources.
    JamesSWD, poohbear and bolski like this.
  4. Uncle Al

    Uncle Al TS Evangelist Posts: 3,581   +2,151

    Hmmmmmmm ...... as much as I dislike Trump it looks like he finally made a good call. This is one technology that is so widely used we can hardly afford to allow for into foreign hands and before you argue about their use, all of these producers produce a lot of "specialty" chips for government and military application.
    dms96960, EClyde and MonsterZero like this.
  5. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,360   +939

    @Theinsanegamer I think he was being sarcastic...

    Because my mom said.
  6. erickmendes

    erickmendes TS Evangelist Posts: 339   +124

    "Trump’s order also disqualifies all 15 of Broadcom's proposed candidates for Qualcomm's board from standing for election."

    Hmmmmmmm ¬¬
    MonsterZero likes this.
  7. trparky

    trparky TS Addict Posts: 284   +149

    This is the first smart thing he's during his whole presidency.
  8. Panda218

    Panda218 TS Evangelist Posts: 484   +222

    I highly doubt it was his idea ^^ At least its an improvement though.
    MonsterZero likes this.
  9. mbrowne5061

    mbrowne5061 TS Evangelist Posts: 808   +393

    GPUs are heavily used in the fields of AI and CFD research and design. A strong case can be made that their scarcity is impacting our ability to innovate in these fields that will be critical to the national defense. AI is the future of C&C, and we've reached the limit of what averaged Reynolds models can tell us about hypersonic flows - we now need to compute each flow line independently, and this requires a GPU architecture.

    But, that's neither here nor there really, since this merger was about mobile chips.
  10. bolski

    bolski TS Booster Posts: 52   +69

    Just someone who wants his Obama-GPU (a dig at the Obama phone). They want things for free.
    JamesSWD likes this.
  11. erickmendes

    erickmendes TS Evangelist Posts: 339   +124

    That's why it's so suspicious....
    wiyosaya and JaredTheDragon like this.
  12. GeforcerFX

    GeforcerFX TS Evangelist Posts: 667   +237

    There is no shortage of Tesla and Quadro, Firepro and so on, GPU's miners want the cheap gaming focused chips. Companies trying to do serious parallel processing are buying the higher end workstation and server class cards, which are usually ordered (in bulk) directly from the chipmaker.
  13. EClyde

    EClyde TS Evangelist Posts: 1,375   +459

    Trump has done many great things this is another
    JamesSWD likes this.
  14. Panda218

    Panda218 TS Evangelist Posts: 484   +222

    nothing but the greatest from our great POTUS. Just great things coming from him and his great people. /s
  15. psycros

    psycros TS Evangelist Posts: 1,953   +1,402

    Despite his many flaws, its nice to have a president that's not afraid to stand up to Wall Street.
    JamesSWD and dms96960 like this.
  16. EClyde

    EClyde TS Evangelist Posts: 1,375   +459

    Trump has no flaws as Pres....all those after Ron were flawed though
  17. Angga B

    Angga B TS Rookie

    Great LoL.

    But seriously, one must see beyond the lines here. Why such a strong and right in your face rejection when he can easily (and more smoothly) block it in via DoJ due dilligence for merger which may hugely impair competition?

    What message is he trying to convey to the community of large corporations (and wall streeters)?
    Reachable likes this.
  18. poohbear

    poohbear TS Addict Posts: 170   +88

    Lol he was being sarcastic. Maybe u should get outside and interact with ppl more so u understand what it is. ;)
  19. mbrowne5061

    mbrowne5061 TS Evangelist Posts: 808   +393

    And the enthusiasts and hobbyists fields - where a lot of the most creative innovations often occur - are left high and dry because they can't afford workstation-class cards, and now can't find or afford gaming-class cards either. It took me nearly 6 months to get my hands on a 1080ti, and I use its horsepower for both AI and CFD projects.
    wiyosaya likes this.
  20. wiyosaya

    wiyosaya TS Evangelist Posts: 2,219   +981

    Yeah, while he takes it where the sun don't shine, and sticks it to everyone else.
    There's a comedian in every comment section.
  21. EClyde

    EClyde TS Evangelist Posts: 1,375   +459

    Nothing funny about North Korea except in your world
  22. Reachable

    Reachable TS Addict Posts: 169   +62

    If he had blocked the merger via the conventional means, that would have sent a message to Wall Street that he was interested in regulating the economy and limiting the movement of money.

    But that, of course, is totally not what Trump is about. I think he came up with the idea of blocking the merger himself out of his crude and belligerent nationalism.

    However, he ended up doing the right thing for the wrong reason.
    Angga B and Panda218 like this.
  23. JamesSWD

    JamesSWD TS Addict Posts: 193   +132

    He's done a whole lot more smart things that you'd know about if you were better informed.
    EClyde likes this.
  24. Panda218

    Panda218 TS Evangelist Posts: 484   +222

    I don't watch much Faux news so I'm not properly informed on all the "smart" things he's done.
  25. JamesSWD

    JamesSWD TS Addict Posts: 193   +132

    Thank you for proving my point.

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