The U.S. government has ordered a national security review of Singapore-based Broadcom’s $117 billion bid to acquire U.S. chipmaker Qualcomm, in an unusual move that prompted the latter to delay its March 6 shareholder meeting.
The government action on March 4 highlighted growing U.S. concerns about safeguarding semiconductor technology and cast a doubt on the deal’s success. The Committee on Foreign Investment in the United States (CFIUS), which reviews deals for potential national security concerns, rarely reviews mergers before companies have clinched an agreement.
CFIUS asked Qualcomm to postpone its shareholder meeting, scheduled for Tuesday, by 30 days. Reuters reported last week that CFIUS had begun looking at semiconductor firm Broadcom’s bid as pressure grew from politicians, including senior Republican Senator John Cornyn.
“This measure will afford CFIUS the ability to investigate fully Broadcom’s proposed acquisition of Qualcomm,” the U.S. Treasury Department, which oversees CFIUS, said in a statement.
