Broadcom Writes Hill Lawmakers on CFIUS' Concerns About 5G Implications of Qualcomm Takeover Bid
Broadcom took the fight over its takeover bid for Qualcomm to Capitol Hill, sending 15 lawmakers with oversight of the transaction a letter Friday aimed at easing concerns about the proposal after the Treasury Department's Committee on Foreign Investment in…
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the United States determined earlier in the week that “China would likely compete robustly to fill any void left by Qualcomm [in 5G development] as a result of this hostile takeover.” Qualcomm has been fighting the bid (see 1802050042, 1802160041 and 1802220057). Broadcom “is committed to making the United States the global leader in 5G,” said CEO Hock Tan in the letter to lawmakers. “Any notion that a combined Broadcom-Qualcomm would slash funding or cede leadership in 5G is completely unfounded.” Tan noted a majority of Broadcom's employees and investors are U.S. citizens or are based in the U.S. He also argued Qualcomm “faces a number of challenges that hamper its role in developing 5G” if it's allowed to remain a stand-alone firm.