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>> President Trump ordering a halt to a massive chip deal. I'm Steven Ellis with Reuters in San Francisco. On Monday, President Trump ordered a halt to a bid from Broadcom to take over Qualcomm. Broadcom is based in Singapore, and Qualcomm is based in San Diego. For the past several weeks, the deal has been under review by a board called CFIUS, the Committee on Foreign Investment in the United States to see whether the Singapore company buying the US company raised any national security concerns.
Today in a Presidential Order, President Trump said yes, it does, and banned the transaction from taking place. CFIUS has said that the purchase raises national security concerns because of what's called 5G technology. Which is the technology that's gonna help mobile phones, cars, and other devices connect to wireless data networks in the future at much higher speeds.
US military has expressed concerns that it won't be able to source this 5G technology anywhere else outside of china if Qualcomm falls into the hands of a foreign company. It's not the first time that a US President has stopped foreign investors from buying a United States chip company.
Earlier, President Trump stopped a smaller deal involving an obscure semi-conductor company called Lattice that also did a bunch of business with the Department of Defense. One of the reasons that President Trump's order came so abruptly is that Broadcom was in the midst of re-domiciling its headquarters, that is moving them back to the United States.
One remaining question is what would happen if Broadcom went through with its plans to re-domicile to the United States and started the entire transaction process over again, making a bid for Qualcomm as a US based company.