The U.S. government has outlined key concerns about Broadcom’s proposed merger with Qualcomm, including national security and a risk that Qualcomm could lose ground to China in developing 5G wireless network technology.
“Qualcomm has become well-known to, and trusted by, the U.S. government,” the Treasury Department wrote to lawyers involved in the deal on Monday. “Having a well-known and trusted company hold the dominant role that Qualcomm does in the U.S. telecommunications infrastructure provides significant confidence in the integrity of such infrastructure as it relates to national security.”
The Committee on Foreign Investment in the United States has been reviewing the proposed merger by Broadcom. On Sunday it asked Qualcomm to delay its shareholder meeting, which was to have been held Tuesday.