Trump rejects Broadcom’s bid for Qualcomm over China’s dominance of 5G Mobile communications

U.S. President Donald Trump on Monday blocked microchip maker Broadcom Ltd’s proposed takeover of Qualcomm Inc over fears of Chinese dominance of 5G mobile communications.

The presidential order reflected a calculation that the United States’ lead in creating technology and setting standards for the next generation of mobile cell phone communications would be lost to China if Singapore-based Broadcom took over San Diego-based Qualcomm, according to a White House official.

Qualcomm has emerged as one of the biggest competitors to China’s Huawei Technologies Co in the sector, making Qualcomm a prized asset.

Meanwhile, the United States remains dominant in the standards-setting space currently, China would likely compete robustly to fill any void left by Qualcomm as a result of this hostile takeover.