US Calls Broadcom's Bid For Qualcomm a National Security Risk (nytimes.com)
An anonymous reader quotes a report from The New York Times (Warning: source may be paywalled; alternative source): The United States government said Broadcom's proposed acquisition of rival chipmaker Qualcomm could pose a national security risk and called for a full investigation into the hostile bid. The move complicates an already contentious deal and increases the likelihood that Broadcom, which is based in Singapore, will end its pursuit of Qualcomm. Such an investigation is often a death knell for a corporate acquisition. A government panel, the Committee on Foreign Investment in the United States, or Cfius, noted, in part, that the potential risk was related to Broadcom's relationships with foreign entities, according to a letter from a United States Treasury official. It also said that the deal could weaken "Qualcomm's technological leadership," giving an edge to Chinese companies like Huawei. "China would likely compete robustly to fill any void left by Qualcomm as a result of this hostile takeover," the official said in the letter. The letter and the public call for an investigation reflects a newly aggressive stance by Cfius. In most cases, the panel operates in secret and weighs in after a deal is announced. In this instance, Cfius, which is made up of representatives from multiple federal agencies, is taking a proactive role and investigating before an acquisition agreement has even been signed.
All I know is that Broadcom is synonymous with buggy hardware.
Please let that company die.
Although I personally don't agree with this takeover attempt, I have to point the hypocrisy of the US.
"When buying and selling are controlled by legislation, the first things to be bought and sold are legislators."
-- P. J. O'Rourke
Prove anything by multiplying Huge Number times Tiny Number
Can we just dispense with linking paywalled sources in the first place?
It's definitely a poor idea to allow Huwei or however the fuck it's spelt to dominate this space.
"Oh my God. This is terrible. This is the end of my Presidency. I'm fucked."; ~ Donald J. Trump
Instead of taking over companies and rinsing them of all their assets...
lets see broadcom actually produce some new products from LSI and Brocade maybe ?
they are headquartered in singapore to pay as little tax as possible...
I don't care if they have a building in Singapore. They are not a security risk.
We all remember the original Red Dawn, the movie where Russian troops invade the US and high school kids carry out guerilla warfare against the invading Russians.
Red Dawn 2064 opens with Evgeny Shamalov, the first candidate of the new UltraCon-Republican party, being sworn is as President of the United States. Sharmalov, it is revealed, lost the popular vote, but won the electoral college in an election widely regarded as having been rigged.
Flash back to 2013. We see a small jet land at a private airport outside Miami. A very pregnant Yekaterina Vladimirovna Tikhonova Sharmalov (nee Putin) is helped down the steps and into a waiting limo which whisks her away to a hotel reminiscent of Mar-A-Lago. A few days later she goes into labor and delivers a baby boy. A baby boy she names Evgeny.. Days later they fly home to Russia in possession of an American birth certificate.
Flash forward to 2064 again. Smarmolov quickly moves to cement his power, taking control with an iron fist. Russian billionaires move to the US in record numbers. Just like the Norman invasion of England in 1066 where the Norman nobility take over, except now it's the new Russian nobility and Americans are the new serfs.
High school kids that try to rise up are quickly eliminated by US Air Force Predator drones strikes, flown by our own US military. The kids have AR-15s – America never passed reasonable gun control – but they didn't stand a chance against Predators and guided missile strikes.
-- Americanus
I'm sure USA would survive this threat. ... The rest of the world has been coping just fine.
Qualcomm, Intel, Apple, FB, Google, MS, IBM,
http://money.cnn.com/2017/11/02/news/companies/broadcom-singapore-us-move-trump/index.html
Broadcom is not a Singaporean company. Its HQ is inside the USA
The only 'risk' there is, is that its CEO is, unfortunately, not a White dude
Hock Tan, the CEO of Broadcom is an ethnic Chinese from Malaysia, although he already is a naturalized citizen of the United States of America
The whole 'national risk' is based on race
In other words, if the CEO of Broadcom is Shanghai Bill, a White dude, the US government won't even raise an eyebrow
The US is a Military worshiping dictatorship, everything is about national security for them.
I'm from New Zealand, and I think this a quite an oversimplification. Australia has much higher trade barriers than NZ, and has much higher growth (they have had something like 28 years now without a recession). This is because they have a big enough population to sustain their own heavy industries, and abundant natural resources that are in high demand.
The countries you list are all very small either population and/or resource wise. They have to trade, or their people go without. It doesn't really prove anything as to whether protectionist policies are useful or not.
I generally agree that trade barriers are stupid, but there is also the valid counter point that other countries do not necessarily play the game fairly. There is no easy solution to this, because if a country reacts by putting up its own barriers (tariff or non-tariff) then you just start a tit-for-tat trade war which most certainly is very damaging to all involved. But doing nothing can invite further abuses from your trade partners.
Personally I think a lot of people want to find 'the one rule to rule them all' around trade and economics because it is intellectually satisfying. But I do not believe that exists in many areas of economics. Indeed, I think the greatest failing of neo-liberalism, is that it allowed intellectually incompetent people to sweep into power by proclaiming that the solution to every problem was simply 'leaving it to the market'. How else do you explain the bunch of idiot showmen/women who now dominate western politics.
Everybody who ever grappled with driver BLOBs knows that Qualcomm* 'has an open heart' for people coming in via radio. This allows agencies to take over your phone easily via GPRS/LTE using an IMSI-catcher or simply by getting hooked in-between "by law" (after all, your're a potential terrorist). :-P
Now if Broadcom takes over Qualcomm this could jeopardize their neat back doors. Makes you want to cry, doesn't it?
---
*"Qual": noun, female; German for 'ordeal'.
Cfius? They could've just included the O and made it COFIUS pronounced Coffee Us but because they left it out now it's prounounced SIF E US like syphilis.
No matter how many companies/governments complain about Q'com, it is a company invests heavily on R&D, hires good people, and pays good salaries. The other B-company as we know today, is purely the product vulture capitalism. In such circumstance, how the company and employees are screwed while the owner makes a shitload money is Lampert and Sears. Be afraid, be very afraid ....
I am confused. Has Wikipedia ever lied?
https://en.wikipedia.org/wiki/Broadcom
Broadcom aka Avago
If they had initiated the hostile take over in 2016, they could have just made a donation to the Clinton Foundation. It worked well for Uranium One.
Can we just dispense with linking paywalled sources in the first place?
It's definitely a poor idea to allow Huwei or however the fuck it's spelt to dominate this space.
Yes, but the solution is for American Companies to stop royally sucking, not putting up government acts of business obstruction.
Recently America started crybabying about Chinese dominating the solar panel industry. BUT the reason that China dominates is THEY invested heavily in Solar power R&D at a time when The US of A made a decision to double-down on "fossil fuels".
Choices have consequences, deal with it.
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