Intel Planning to Acquire Broadcom

  • Intel Planning to Acquire Broadcom

Intel Planning to Acquire Broadcom

Broadcom was an Irvine-based fabless semiconductor company that was acquired in 2016 by Avago Technologies, a company that began life as a product division of Hewlett-Packard, and was later spun off in 1999 into Agilent Technologies.

Intel is considering several acquisition possibilities in response to Broadcom's $117 billion bid for Qualcomm, including the possibility it may make a bid for Broadcom, according to a Wall Street Journal report. Intel, though, sees its counterpart's focus in the lucrative 5G field as a boon in the waiting.

Intel, the world's biggest chipmaker, is anxious that a combined Broadcom-Qualcomm would make it harder for it to boost market share in chips for mobile phones and cars.

US national security officials are threatening to recommend that President Donald Trump block Broadcom's proposed takeover of rival chipmaker Qualcomm, according to a Treasury Department letter made public Monday.

But in its letter on Sunday, Cfius said that it believed Broadcom had violated the panel's order by moving up its redomiciliation date without enough consultation with the government. CFIUS put a halt to Broadcom's campaign last week in order to investigate the potential deal over national security concerns.

A U.S. national security panel has ordered Singapore-based chipmaker Broadcom to provide it with five business days' notice before taking any action toward redomiciling to the United States, a regulatory filing this week revealed. If it looks like Broadcom is likely to prevail, Intel could step in with its offer for Broadcom, the people said.

Broadcom on Friday said it expected to complete its move to the United States by May 6.

Broadcom, a maker of chips for everything from cable modems to set-top boxes to digital video recorders, announced an unsolicited bid of $130 billion for Qualcomm in November.

The result of the attention was a delay to a Qualcomm stockholder meeting where Broadcom hoped the deal would be approved. Broadcom's CEO, Hock Tan, announced in November at a White House press conference that the company would return to the US, citing the Republican Party's tax overhaul that President Donald Trump would sign the following month. That would let Broadcom redomicile by April 3, ahead of Qualcomm's rescheduled shareholder meeting.

Intel Corporation, the largest and highest valued semi-conductor chipmaker, is considering making a bid to acquire Broadcom, according to The Wall Street Journal reports.

"That investigation has so far confirmed the national security concerns that CFIUS identified to you in its letter on March 5, 2018". If Broadcom completes its corporate headquarter move, that could mean CFIUS would be unable to block the acquisition.