5G Technology behind the Killing of the Deal between Qualcomm and Broadcom

Earlier this week, the president issued an executive order killing the prospective merger between Broadcom and mobile chipmaker, Qualcomm. The reason behind this move relates to fostering the growth of 5G technology across the country. National security concerns also lie at the heart of the decision.

Qualcomm-logo
The Qualcomm logo. Image copyright Qualcomm.

News about the blocked Qualcomm purchase appeared this week in CNET among other sources. Let’s look at the details to see if it influences when 5G wireless technology arrives in your city.

Protecting US 5G Technology Innovation

President Trump’s decision follows a report from the Committee on Foreign Investment in the US (CFIUS). Their government analysis stated the Singapore-based Broadcom buying the American Qualcomm puts us at risk regarding mobile 5G technology. The country obviously places much importance in the growth of 5G over the next decade.

While 5G networks offer the potential for faster mobile wireless voice and Internet service, it also lies at the heart of innovations in self-driving cars, remote surgery, and more. In short, Qualcomm’s technology is important to the country in a myriad of ways.

The company remains the world’s leading manufacturer of the chips used in mobile phones as well as 4G LTE tech. They are currently investing in the research of 5G networking. Qualcomm’s R&D work puts it ahead of other foreign technology firms.

The Future of Mobile 5G gets closer

These other countries, however, are upping their games when it comes to 5G research. Just last week, we reported on the Chinese phone-maker, Huawei, and their recent 5G smartphone announcement at Mobile World Congress in Barcelona. Additionally, the CFIUS report mentioned Huawei by name.

American microprocessor technology giant, Intel, previously tried to buy Qualcomm. The blocking of the Broadcom purchase attempt by the U.S. Government might lead to Intel taking another shot. AT&T, Verizon, and other mobile technology firms rely on Qualcomm‘s work, making them attractive to Intel.

If anything, this presidential executive order dovetails nicely with their plans to build a federal 5G network that we reported on earlier. Letting Qualcomm innovate appears to be the ultimate goal.

With AT&T, Sprint, and T-Mobile all announcing 5G wireless networks by the end of this year, it is obvious this new age of wireless mobile technology is reaching a critical mass. The benefits go beyond faster mobile Internet access. Expect to read more about the continued adoption of 5G here at Bandwidth Place as it happens.