Trump blocks Broadcom takeover of Qualcomm

WASHINGTON — President Donald Trump blocked Singapore chipmaker Broadcom on Monday from pursuing a hostile takeover of U.S. rival Qualcomm on national-security grounds.

The decision abruptly ends Broadcom’s $121 billion bid to buy Qualcomm — a deal announced four months ago that would have been the largest ever in the technology industry.

Neither Broadcom nor Qualcomm immediately responded to requests for comment.

Broadcom faced challenges almost from the start of its quest. Qualcomm quickly spurned its unsolicited suitor and continued to resist even after Broadcom raised its offer from $103 billion.

Broadcom’s Singapore connections complicated matters, raising fears about a prominent U.S. chipmaker being owned by a foreign company.

Although its name isn’t widely known outside the technology industry, Qualcomm is one of the world’s leading makers of the processors that power many smartphones and other mobile devices. Qualcomm also owns patents on key pieces of mobile technology that Apple and other manufacturers rely upon in their products.

Trump decided to squelch Broadcom’s bid on the recommendation of the Committee on Foreign Investment in the United States, which reviews foreign purchases of U.S. entities.

The decision didn’t come as a surprise. Earlier this month, the committee branded the proposed deal a potential security risk that could hobble the U.S.’s ability to accelerate the speed of mobile networks to an ultra-fast standard known as “5G.”