Tue Mar 13, 2018, 11:19 AM

Trumps Message in Blocking Broadcom Deal: U.S. Tech Not for Sale

•Order stopping Qualcomm deal signals tougher stance on China
•Broadcom’s bid for chipmaker raised national security concerns

March 12, 2018, 11:24 PM EDT Updated on March 13, 2018, 6:52 AM EDT

With his swift rejection of Broadcom Ltd.’s hostile takeover of Qualcomm Inc., President Donald Trump sent a clear signal to overseas investors: Any deal that could give China an edge in critical technology will be swatted down in the name of national security.

Although Broadcom is based in Singapore, China loomed large over the U.S. government’s fears about a foreign takeover of chipmaker Qualcomm. That’s because Qualcomm is locked in a head-to-head race with China’s Huawei Technologies Co. over which company will dominate the development of next-generation wireless technology.

"This decision hangs a huge ‘not-for-sale’ sign on just about every American semiconductor firm," said Scott Kennedy, who studies China’s economic policy at the Center for Strategic & International Studies in Washington. "A Chinese entity doesn’t need to be anywhere near a transaction now in semiconductors for the deal to be nixed."

The president’s order on Monday blocking Broadcom’s $117 billion bid for Qualcomm is the latest sign of Trump’s tough stance on foreign takeovers of U.S. technology and is part of a broader move to contain China on trade. The Trump administration is considering clamping down on Chinese investments in the U.S. and imposing tariffs on a broad range of its imports to punish Beijing for its alleged theft of intellectual property.


2 replies, 166 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 2 replies Author Time Post
Reply Trumps Message in Blocking Broadcom Deal: U.S. Tech Not for Sale (Original post)
RCW2014 Mar 2018 OP
Zappa Dappa Doo Mar 2018 #1
RCW2014 Mar 2018 #2

Response to RCW2014 (Original post)

Thu Mar 15, 2018, 09:42 PM

1. Were I only interested in financial gain I'd would have voted for the 'merger'.

Last edited Fri Mar 16, 2018, 12:52 PM - Edit history (1)

Qualcomm represents around 20% of our portfolio, the offered price was high enough to pay for the substantial capital gains tax we would have incurred and based on their performance it could have been a good way to dump the stock and invest elsewhere.

However, in the end we voted not to replace the current board members with those favorable to Broadcom. We still consider Qualcomm to be a local company. The Zappa Dappa Doo's were friends with Irwin Jacobs when he was working out of his garage back in the early days. Over time their philanthropy has been significant to our community. They saved the San Diego Symphony - $120 million. Huge investment in the engineering department at UCSD. Take in a play at the Old Globe, San Diego Rep, or the La Jolla Playhouse and you'll find they are major donors.

We attend a number of film festivals, one we never miss is the San Diego Jewish Film festival. There was a clip of Joan and Irwin talking about their philosophy on giving back based on their Jewish values, can't find it but here's another that's similar.

Beyond this are the changes Broadcom would put forth. Reducing R&D would be disastrous, this is what Qualcomm does and we need good old American companies to be in the forefront of these emerging technologies.

My fear is that Broadcom will put forth a front of being an "American" corporation and in the not-so-distant future they'll try this again - only this time succeeding.

"The couple’s devotion to philanthropy goes back many decades before those donations. The Jacobses grew up in Jewish families of modest means — Joan Jacobs (née Klein) in New York City and Irwin Jacobs in New Bedford, Mass.

“Our families were philanthropic, but on a very different level,” Joan Jacobs said. “They gave to the local synagogue, but not in any major way. We both came from very humble homes. We’re very fortunate to be able to do what we’re doing now.”

A great American success story.

Reply to this post

Back to top Alert abuse Link here Permalink

Response to Zappa Dappa Doo (Reply #1)

Thu Mar 15, 2018, 09:51 PM

2. Almost brought "tears" to my eyes...

Reply to this post

Back to top Alert abuse Link here Permalink