In a rare moment of unity, Senate Minority Leader Chuck Schumer (D-N.Y.) praised President Donald Trump for blocking Broadcom's $117 billion acquisition of Qualcomm.
“Let me say unequivocally: President Trump and his administration made the right decision on blocking Broadcom from taking over Qualcomm,” Schumer said Tuesday from the Senate floor.
Qualcomm and Broadcom — in that order — are the global leaders in chipmaking technology. Trump stepped in to block the potential merger, CNBC reported, over national security concerns.
The president said Monday there is “credible evidence” that Singapore-based Broadcom, through the control of California-based Qualcomm, could try to “take action that threatens to impair the national security of the United States.”
Stacy Rasgon, a chip analyst at Bernstein, explained it this way:
“The case that has been constructed is that, given Broadcom's business practices, the worry is that they will cut investment significantly, particularly in the 5G roadmap, weaken Qualcomm, as well as the U.S. position and allow Huawei, a Chinese company to take the lead.”
Huawei has a quickly expanding presence in technological development, Bloomberg reported. And while the Chinese tech company is not directly linked to Broadcom, the merger between the Singaporean company and Qualcomm could make growth even easier — and faster — for the brand.
“We all know that China has been rapacious about trade and very smart,” Schumer explained. “They look for places where they can steal our best technology.”
Trump made the decision to block what would have been a historic deal based on recommendations from the Committee on Foreign Investments in the United States.