Tuesday will be a good day for China and a bad day for America if shareholders of San Diego-based Qualcomm vote – as seems likely – to approve a slate of directors chosen by Singapore-based computer chip giant Broadcom.
To prevent this, the Trump administration should immediately step in to stop what is the first step of a hostile takeover.
Right now, Qualcomm is the global leader in cellular communications technology, and it is working hard to win the race against others to develop 5G, the 5th generation of wireless technology.
When 5G is developed it will offer far faster speeds and near-universal connectivity, linking homes, vehicles, machines, and just about everything else. As a result, the company controlling 5G will control much of the world’s communications for a decade.
If Broadcom purchases Qualcomm, China would benefit because Qualcomm will, in all probability, be forced out of the race to develop 5G, opening the way for the Chinese company Huawei Technologies to dominate wireless.
The Committee on Foreign Investment in the United States, the inter-agency panel that reviews national security implications of foreign acquisitions of U.S. businesses, has been scrutinizing Broadcom’s moves to acquire Qualcomm.
Source : foxnews
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