The US president Donald Trump has Broadcom’s proposed takeover of rival chipmaker Qualcomm, citing fears over the national security threat the deal could pose.
In an executive order, Trump claims there is “credible evidence” to suggest that Singapore-based Broadcom may use the acquisition to “take action that threatens to impair the national security of the United States”.
Though Broadcom can appeal the order, it’s highly unlikely the decision will be reversed, and the idea world’s biggest technology sector takeover can now be put to the rest.
Trump’s decision is another sign of his ‘America first’ mantra and the growing fears around espionage from foreign entities – namely China.
It follows similar concerns that were raised by the US Senate and House intelligence committees surrounding deals between Chinese smartphone maker Huawei and AT&T and Verizon earlier this. The deals that were in place would have seen Huawei phones become available in the US through the carriers. However, under pressure from the government, both Huawei and AT&T made the decision to pull out of their respective deals.