"Given the Chinese influence at least, and ownership, to a certain extent, of Broadcom, and their interest in getting some of this 5G technology, that it is a national security issue, so I think that it's appropriate that CFIUS look at it", Portman told CNBC in an early interview Tuesday. And it could have an easier time buying USA targets if it goes through with plans to redomicile in the United States.
San Diego-based Qualcomm evolved from a United States military aerospace contractor to become the dominant player in wireless radio technology over the past two decades, with its chips used in half of all smartphones.
"Broadcom strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns", the company said, adding that it was reviewing the order.
Just because Trump blocked Broadcom's plans doesn't automatically mean that the USA will have a lead over China when it comes to 5G.
The deal would have been the biggest technology sector takeover on record. Although Broadcom is based in Singapore, China loomed large over the USA government's fears about a foreign takeover of chipmaker Qualcomm. He described the CFIUS communication to Broadcom as "unprecedented". The committee also said that the technology of Qualcomm-which makes wireless chips and licenses wireless patents crucial to smartphones and other-was too important to put into the hands of a foreign company with links to China.More news: Twitch Prime Subscribers Now Get Free PC Titles Every Month
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Meanwhile, Broadcom announced today that is has accelerated its timetable for redomiciling its organization from Singapore to the USA, moving up the date from May 6 to April 3.
Broadcom appeared to be laying the groundwork to get ahead of potential national-security concerns and to win favor with Mr. Trump even before it launched its bid for Qualcomm. Tan "a great, great executive" and said Broadcom was "one of the really great, great companies". Broadcom's options are "not many, and not good", said Michael Gershberg, an attorney with Fried, Frank, Harris, Shriver & Jacobson LLP, who has experience with CFIUS cases.
Broadcom shares rose 3.6% Monday to $262.84, and Qualcomm fell 0.35% to $62.81.
The cash-and-stock bid, which Qualcomm had rejected, was under investigation by the U.S. Committee on Foreign Investment in the United States, a multi-agency panel led by the Treasury Department that reviews the national-security implications of acquisitions of U.S. corporations by foreign companies.
This item was corrected at 12:32 p.m. ET on Tues., March 13, 2018 to show that A bipartisan group of 22 House members wrote to the Committee on Foreign Investment in the U.S.in December 2016, not December of a year ago.