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Why Blocking Broadcom’s Acquisition of Qualcomm Might Be a Good Thing

President Trump has nixed Singapore-based Broadcom’s purchase of American chipmaker Qualcomm on national security and protectionist grounds, although Broadcom had promised to relocate to the United States. Analyst Ben Thompson explains why he thinks this was the right move. In short, Broadcom had made it clear that it planned to focus on Qualcomm’s past patents instead of producing new technology with the company’s resources. This would have reduced competition with Chinese companies in future mobile developments — 6G and beyond — and thus potentially left the United States at a technological disadvantage.favicon follow link


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Tom Gewecke  2018-03-15 11:30
Fascinating! I guess if someday Qualcomm execs or their shareholders contemplate this perfidious shift in focus on their own, they can just be nationalized.
I was thinking the same thing. After all, no US company has ever been known to "focus on their past patents" and rest on their laurels rather than "produce new technology with its resources".

This article rubs me the wrong way. Bottom line, the US government is acting like the Chinese government in order to protect the US economy from Chinese shenanigans. In which twisted way can that be expected to work?

I darn well hope the US economy and its industries' innovation does not depend on protectionist interventions by the government. I mean, just ask yourself out loud. The US government as the warrantor of US industriousness and innovation? Really?

Don't get me wrong. I'm sure the Chinese dictatorship has nothing but the worst intentions and I do not hesitate for a moment to speak up about all the danger emanating from that dark corner. But when we have reached the point where to defend ourselves from that regime we resort to their tactics, well then God help us all.