Market Insight

Huawei looms large over Trump’s decision on Broadcom-Qualcomm deal

March 16, 2018  | Subscribers Only

Wayne Lam Wayne Lam Principal Analyst, Mobile Devices & Networks

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The decision handed down by the Trump administration essentially put an end to the months-long $117B hostile bid by Broadcom (AVGO) for Qualcomm (QCOM).  Trump cited national security and US competitiveness in the upcoming 5G transition as reasons to block the troubled acquisition.  However, behind the scenes, a clearer picture is emerging as to the threat that US perceives China – specifically Huawei - as being on the future competitiveness in the wireless sector of the market. Thus, this business-friendly administration ultimately yielded to national interests in handing down their decision.

Appealing to the “America First” Policy

Qualcomm, in their fight to stay independent, approached the Committee on Foreign Investment in the US (CFIUS within the Treasury Dept.) to...

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