TRUMP ADMINISTRATION FOLLOWS HUNTER LEAD ON REVIEWING QUALCOMM DEAL

Mar 19, 2018 Issues: National Security

Washington, DC -- Multiple reports are indicating that the Committee on Foreign Investment in the United States (CIFUS) has initiated a review of the proposed takeover of San Diego-based Qualcomm by Broadcom, Ltd, a competitive rival based out of Singapore.  Congressman Duncan Hunter (CA-50), a member of the House Armed Services Committee, sent a letter to President Trump last week outlining the national security implications of such action, as well as the adverse effect the takeover would have on the San Diego job market.

“This is a good first step, but we have a lot more to do,” said Congressman Hunter.  “Reports that CFIUS has begun a review of Broadcom’s proposed takeover of Qualcomm demonstrates that the Trump Administration is taking the national security concerns I raised in my recent letter seriously.  Qualcomm has critical intellectual property that is important to communication capability and it must be protected.  In previous mergers, Broadcom has a clear history of initiating layoffs and the economic ramifications for San Diego could be devastating; we must protect these jobs and national security.”

Senator John Cornyn of Texas also expressed concerns with this takeover action and sent a letter to Treasury Secretary Steven Mnuchin urging CFIUS to expedite and complete its review prior to next week’s Qualcomm board meeting.  Congressman Hunter agreed with Senator’s Cornyn’s argument.

“The scheduled shareholding meeting on March 6 is critical,” said Congressman Hunter.  “If Broadcom forces a vote, it could potentially take control of Qualcomm’s governing board.  The time to act is now and it is imperative that CIFUS move quickly.”