Intel may acquire Broadcom if it succeeds taking over Qualcomm
Intel may acquire Broadcom, if it succeeds taking over Qualcomm. The initial buy-out price may reach $109 billion.
Intel is the king of chipmakers for personal computers in the world. However, it has no presence in the mobile industry. It attempts to enter into the mobile industry but failed a few years ago.
Intel is now watching closely at the takeover. The company is eager for Broadcom to fail at acquiring Qualcomm as the combined company would pose a serious competitive threat.
Although most of its employees and offices are in the US, Broadcom is consider as a foreign company as it is legally based in Singapore. However, Broadcom is already planning to move back to the US as a result of the tax reform plan.
The US Govt. has set up a committee on foreign investment to regulate the acquisitions of American companies by foreign ones. The committee thinks that the take-over will weaken Qualcomm’s position as a technological leader and leave an opening for China to expand its influence on the 5G standard-setting process.