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Trump halts Qualcomm takeover by Broadcom for national security
In an unexpected turn of events, the American president Donald Trump blocks the takeover of chipmaker Qualcomm by Broadcom, for reasons of national security.
The president states that there is no other way to guarantee national security and that he has "credible evidence" that security risks rise. Furthermore, the document states that Qualcomm must hold its annual shareholders' meeting in the next ten days. The company must stop the acquisition together with Broadcom and provide written proof of this once the step has been taken. The presidential order reflected a calculation that the United States’ lead in creating technology and setting standards for the next generation of mobile cell phone communications would be lost to China if Singapore-based Broadcom took over San Diego-based Qualcomm, according to a White House official, reports reuters.
Qualcomm has emerged as one of the biggest competitors to China’s Huawei Technologies Co in the sector, making Qualcomm a prized asset. A White House official on Monday confirmed that the national security concerns related to the risks of Broadcom’s relationship with third party foreign entities.
A source familiar with CFIUS’ thinking had 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).”
Huawei has been forging closer commercial ties with big telecom operators across Europe and Asia, putting it in prime position to lead the global race for 5G networks despite U.S. concerns.
Huawei has a dominant position in China, which is set to become the world’s biggest 5G market by far, and has also made inroads in the rest of world to compete with rivals such as Ericsson and Nokia in several lucrative markets, including countries that are longstanding U.S. allies.
fantaskarsef
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Posts: 13530
Joined: 2014-07-21
#5527629 Posted on: 03/13/2018 09:47 AM
Trump doesn't want somebody else abuse all the back doors they produce with their chips.
Trump doesn't want somebody else abuse all the back doors they produce with their chips.
vbetts
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Posts: 15143
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#5527700 Posted on: 03/13/2018 02:06 PM
I am not one to get political here, but how is this a threat to national security?
We actually have issues that are real threats to national security that have actually happened in the past few months, real events where people lost their lives.
I am not one to get political here, but how is this a threat to national security?
We actually have issues that are real threats to national security that have actually happened in the past few months, real events where people lost their lives.
fantaskarsef
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Posts: 13530
Joined: 2014-07-21
Senior Member
Posts: 13530
Joined: 2014-07-21
#5527703 Posted on: 03/13/2018 02:11 PM
I am not one to get political here, but how is this a threat to national security?
We actually have issues that are real threats to national security that have actually happened in the past few months, real events where people lost their lives.
Those issues can't be solved via twitter, so it's out of discussion.
j/k, we know that this is not about making sensible decisions. It's protectionism at it's best, anti competitive, anti free market, anti free trade, etc.
I am not one to get political here, but how is this a threat to national security?
We actually have issues that are real threats to national security that have actually happened in the past few months, real events where people lost their lives.
Those issues can't be solved via twitter, so it's out of discussion.
j/k, we know that this is not about making sensible decisions. It's protectionism at it's best, anti competitive, anti free market, anti free trade, etc.
Turanis
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Joined: 2014-08-15
Senior Member
Posts: 1780
Joined: 2014-08-15
#5527710 Posted on: 03/13/2018 02:30 PM
They (US gov)have spoken the truth: the chinese company Huawei is lead by a former military of red PeopleLibArmy.
Thats why Huawei and ZTE dont have the official right to sell phones on USA market.
"Chinese manufacturer Huawei was expected to announce a partnership with AT&T to distribute its devices in the US. But the telecoms carrier has called off the deal at the last minute.
You can already buy unlocked Huawei devices online and in some retail stores in the US, so it’s likely that the Mate 10 Pro will also be made available. But a carrier deal would have helped push the company's products in the States.
Despite being the third-largest smartphone manufacturer behind Samsung and Apple, Huawei has struggled to make a big impact in the US. This is partly due to a 2012 House Intelligence Committee report that warned carriers not to do deals with the firm because of the influence China has over it, which could pose a threat to US security."
Better keep the eggs in your basket,than sell it to a foreign "enemy" company.And indeed chinese is on the offensive wave,they buy everything.Because they can,they have a lot of money from their cheap exports.
https://www.techspot.com/news/73279-six-us-intelligence-chiefs-warn-against-using-huawei.html
They (US gov)have spoken the truth: the chinese company Huawei is lead by a former military of red PeopleLibArmy.
Thats why Huawei and ZTE dont have the official right to sell phones on USA market.
"Chinese manufacturer Huawei was expected to announce a partnership with AT&T to distribute its devices in the US. But the telecoms carrier has called off the deal at the last minute.
You can already buy unlocked Huawei devices online and in some retail stores in the US, so it’s likely that the Mate 10 Pro will also be made available. But a carrier deal would have helped push the company's products in the States.
Despite being the third-largest smartphone manufacturer behind Samsung and Apple, Huawei has struggled to make a big impact in the US. This is partly due to a 2012 House Intelligence Committee report that warned carriers not to do deals with the firm because of the influence China has over it, which could pose a threat to US security."
Better keep the eggs in your basket,than sell it to a foreign "enemy" company.And indeed chinese is on the offensive wave,they buy everything.Because they can,they have a lot of money from their cheap exports.
https://www.techspot.com/news/73279-six-us-intelligence-chiefs-warn-against-using-huawei.html
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lol yankees
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