>> Qualcomm, the $93 billion US chip maker's stock plunged more than 5% in trading Tuesday. After President Trump blocked a controversial takeover bid from Singapore based, Broadcom. The deal would have been the biggest ever in tech, but the White House stood squarely in the way. Concerned about control of the next generation of wireless technology, known as 5G, moving out of the US.
Reuters Breaking Views columnist, Rob Cyran, says the move could have a chilling effect across the sector.>> Okay, so the chip making industry, there's a lot of consolidation going on, companies are buying each other right and left. And the Chinese are the marginal buyer, they're the ones going out and saying, we're willing to buy anything.
Because the government has made a very strong case that they want China to control chip making in the next century. And one of the ways that they were doing that was buying American companies, that's simply not going to happen now.>> Broadcom said it was reviewing the Presidential order.
And in a statement said that it strongly disagrees that its bid raises any national security concerns. But that's not the conclusion the Trump administration came to.>> And what they said is Qualcomm's an important company for the United States. Because it controls key wireless technology, it's helped develop it.
The worry was that Broadcom was going to buy Qualcomm, cut R&D. And that would leave, in a few years, Chinese companies, like Huawei, esentially, in control of wireless technology.>> China's Huawei has been developing ties with phone operators across Europe and Asia. Putting it in prime position to lead the global race for 5G, despite US concerns.