U.S. security panel deals major blow to Broadcom’s bid for Qualcomm

“The U.S. government has ordered a national security review of Singapore-based Broadcom Ltd’s $117 billion bid for Qualcomm Inc., in an unusual move that prompted Qualcomm to delay its March 6 shareholder meeting,” Reuters reports.

“The government action on Sunday highlighted growing U.S. concerns about safeguarding semiconductor technology and cast a doubt on the deal’s success. The Committee on Foreign Investment in the United States (CFIUS), which reviews deals for potential national security concerns, rarely reviews mergers before companies have clinched an agreement,” Reuters reports. “CFIUS asked Qualcomm to postpone its shareholder meeting, scheduled for Tuesday, by 30 days. Reuters reported last week that CFIUS had begun looking at Broadcom’s bid as pressure grew from politicians, including senior Republican Senator John Cornyn.”

“The semiconductor industry is locked in a race to develop chips that power so-called 5G wireless technology, allowing the transmission of data at faster speeds. San Diego-based Qualcomm has emerged as one of the biggest competitors to Chinese companies vying for market share in the sector, such as Huawei Technologies Co, making it a prized asset,” Reuters reports. “A source familiar with CFIUS’ thinking said that if the deal was completed, the U.S. military was concerned that within 10 years, “there would essentially be a dominant player in all of these technologies and that’s essentially Huawei, and then the American carriers would have no choice. They would just have to buy Huawei (equipment).””

Read more in the full article here.

MacDailyNews Take: It’ll be interesting to see how this one shakes out.

Regardless, Qualcomm’s FRAND abuse must stop. Qualcomm’s licensing scam — charging a percentage of the total cost of all components in the phone, even non-Qualcomm components — is unreasonable, illogical, and irrational.

SEE ALSO:
EU fines chipmaker Qualcomm $1.2 billion for paying Apple to shut out rivals’ chips – January 24, 2018
Apple countersues Qualcomm for patent infringement – November 29, 2017
Apple designing next-gen iPhones, iPads that would dump Qualcomm components – October 31, 2017
Qualcomm faces long odds in attempt to get ban of iPhone sales and manufacturing in China – October 17, 2017
Qualcomm files lawsuits seeking China iPhone ban, escalating Apple legal fight – October 13, 2017
Qualcomm fined record $773 million in Taiwan antitrust probe – October 11, 2017
Apple faces down Qualcomm, Ericsson over EU patent fees – October 2, 2017
Qualcomm loses two key rulings in its patent royalty fight with Apple – September 21, 2017
Apple’s A11 Bionic obliterates top chips from Qualcomm, Samsung and Huawei – September 18, 2017
U.S. judge rules Apple lawsuits against Qualcomm can proceed – September 8, 2017
Qualcomm CEO expects out of court settlement with Apple – July 18, 2017
Apple-Qualcomm legal dispute likely to be ‘long and ugly’ – July 7, 2017
Qualcomm wants court to block Apple from U.S. iPhone imports and sales – July 6, 2017
Judge rules U.S. FTC antitrust lawsuit against Qualcomm to proceed – June 27, 2017
Apple uses Supreme Court decision to escalate war against Qualcomm – June 20, 2017
Apple’s amended San Diego complaint against Qualcomm leaves no doubt: many billions at stake – June 20, 2017
Apple rejects Qualcomm’s allegation of throttling iPhones, says ‘study’ is ‘methodologically unsound’ – June 20, 2017
Apple just poached one of Qualcomm’s top guys – May 31, 2017

7 Comments

  1. The US cannot build a fighter plane without parts sourced in China thanks to globalization.

    China is building a blue water Navy and is steadily getting more aggressive in the South China Sea and will eventually push that out more into the Pacific. Broadcom is not Chinese, but has deep ties to the ChiComms.

    1. Yet the orange bozo is incapable of strategic precise action against the biggest and most obvious threat to democracy. He bows to muslim princes in saudi arabia and grovels before the new chinese emperor. But he threatens US allies with broad tariffs that hurt all of Americas closest trading partners.

      Hey trump: tax disposable plastic communist chinese junk molded from saudi oil. Increase environmental restrictions so smart American companies can win contracts instead of dirty polluting nations state sponsored filthy companies. Get a clue!!!!

    2. Taking advantage of cheap slave-wages to make cheap fighter plane parts in China isn’t the concern in this situation. It’s parts design.

      As for orange bozo and his attitude toward China, check out this gag-inducing The Trump blurb from last weekend:

      https://www.reuters.com/article/us-trump-china/trump-praises-chinese-president-extending-tenure-for-life-idUSKCN1GG015

      “He’s now president for life, president for life. And he’s great,” Trump said, according to audio of excerpts of Trump’s remarks at a closed-door fundraiser in Florida aired by CNN. “And look, he was able to do that. I think it’s great. Maybe we’ll have to give that a shot someday,” Trump said to cheers and applause from supporters.

      1. When a computer chip is sourced overseas, how can you be reasonably sure there is not an easter egg hidden in the HW that is awaiting activation?
        If we were to fight a war with China a large part of our newer equipment would include Chinese made components or assembly. Imagine if they could hack our networks and send a signal to activate hard wired stuff that would disable our weaponry or 3Ci?

        Also, if an American company wants to build in China they demand technology transfer. This way the state owned enterprises get all your IP or a good look at it.

        1. We’ve already found China stuffing ‘Easter eggs’ into chips for the purpose of surveillance of devices using them. That’s an historical fact. √

          But I don’t know of any case of a USA designed chip having its design hacked, resulting in a mal-chip. Instead, the China hacked chips were of Chinese design. Any company buying Chinese designed chips is dead stupid!

          A great example: The nightmare IoT cameras coming out of China that any old granny can surveil over the Internet. They’re back-doored at the factor! Their security is non-existent! I was just pointing this out over at TidBITS this week regarding the questionable WyzeCam devices that are both designed and manufactured in China with added USA written software and firmware. I would trust such a device not-at-all.

          Sadly, you are correct that China: Criminal Nation is now demanding technology transfer from US companies manufacturing in China. That’s criminal! I’ve NEVER supported Apple manufacturing in China. Much as I can admire Tim Cook, I condemn him feeding China from Apple’s plate. The future is going to HATE companies that have enabled China’s reemergence as an empire in Asia. Sad consequences await.

          That Apple has to fork over their IP to China is sick. Again I shout at Apple: Get the HELL out of China! But short-term thinking, long-term disaster remains a Spirit of the Age. *sigh*

  2. OTG. For possibly the first time ever, I have to thank senior Republican Senator John Cornyn for doing something WISE and tech savvy. Handing technology over to China would be utterly InSaNe. We have enough trouble with China: Criminal Nation ripping off USA technology by way of their BOT ARMY.

    Why Apple hasn’t bid to buy stupid Qualcomm, I cannot fathom. That move would end the lawsuit food fight and secure Apple’s dominance in mobile computer devices for quite some time. (Hmm. Maybe too dominant, as in the SEC already says ‘NO!’??)

    [China: Criminal Nation has been cracking into both US government and corporate computers since 1998, the year they were handed ‘Most Favored Nation’ status by then prez Clinton. China accomplished this via the Red Hacker Alliance, a collection of online Chinese hackers who were eventually integrated into the Chinese military. They are repeatedly implicated in malware perpetration and server cracking/PWNing around the world.]

    [Nattering on because I’m high on dark roast:
    The reason China wants to buy technology is that the fraud called ‘communism’ destroys individual personal incentive. As a result, the populace turn to crime in order to obtain incentivized rewards. This is why every ‘communist’ nation immediately collapses into a Criminal Nation. IOW, crime provides a greater incentive than actual invention and innovation. This has constantly been verified by China’s ripoff economic system whereby they rob and imitate but rarely create. Also witness this history of Russia, North Korea, ad nauseam.

    As such, feeding China: Criminal Nation any genuine source of technological invention would be outright stupid. Never hand your car keys to a car thief. Duh.
    🍕🐀🐀🐀🐀🐀

    [BTW: I heartily support any Chinese business that honestly and seriously creates great, new, innovative technology! Good on them! They deserve my ¢a$h. Examples: Lepow and KENTLI, whose gear I greatly admire and own.]

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