Trump Issues Order Barring Broadcom's Takeover Bid for Qualcomm, Citing 5G

President Donald Trump issued an order barring Broadcom’s takeover bid for Qualcomm in response to the Committee on Foreign Investment in the United States’ finding last week that “China would likely compete robustly to fill any void left by Qualcomm [in 5G development] as a result of this hostile takeover.” Trump invoked the 1950 Defense Production Act, saying “there is credible evidence that leads me to believe” Broadcom “might take action that threatens to impair the national security” of the U.S., said an email Monday evening from the White House. The takeover bid is “prohibited” and Broadcom and Qualcomm must “certify in writing [to CFIUS] that such termination has been effected,” Trump said.

Qualcomm has been fighting the bid. Broadcom CEO Hock Tan took his fight over the deal to Capitol Hill last week after CFIUS released its determination, telling top lawmakers the company is “committed to making the United States the global leader in 5G.”

Broadcom and Qualcomm didn't immediately comment.