Rep. Peters released the following statement after President Trump blocked Broadcom’s proposed buyout of San Diego-based Qualcomm, citing national security concerns:
“In a letter to Treasury Secretary Mnuchin, I laid out these very same national security concerns over the hostile takeover of Qualcomm cited in the Executive Order. I requested the Committee on Foreign Investment in the United States (CFIUS) review the takeover bid for national security threats, and their latest letter to both companies said the deal would weaken Qualcomm’s leadership and give Chinese companies an edge. I’m glad the President blocked Broadcom’s bid and I’m grateful to the Administration for acting quickly before Qualcomm’s annual meeting.
I’m particularly glad Broadcom’s proposed candidates are prohibited from running for election to Qualcomm’s Board of Directors. Infiltration of the Board posed a similar threat, and could have opened the U.S. to more security vulnerabilities though potential ties to the Chinese government or military. This sends a message to Broadcom and other foreign companies that this innovation is vital to national security. It also reinforces to Qualcomm that it is on the right path and it should continue innovating.
Qualcomm is leading in the rollout of 5G technology across the nation and this takeover threatened San Diego’s economy, jobs, and intellectual property in addition to our national security and telecommunications infrastructure. This order rightfully shields Qualcomm from a takeover, so the U.S. can continue to compete in the global technological space and San Diego can continue to lead in the deployment of revolutionary 5G technology.”