His order cited “credible evidence” that the proposed $140bn (£100bn) deal “threatens to impair the national security of the US”.

There were concerns the takeover could have led to China pulling ahead in the development of 5G wireless technology.

The deal would have been the biggest technology sector takeover on record.

A takeover of Qualcomm by Broadcom would have created the world’s third-largest maker of microchips, behind Intel and Samsung.

The chipmaking sector is in a race to develop chips for the latest 5G wireless technology and Qualcomm is considered to be a leader in this field, followed by Broadcom and China’s telecoms giant Huawei.

Analysts say Qualcomm is highly regarded for its commitment to research and development (R&D), particularly in the field of 5G technology. Huawei is equally committed to R&D in the area.

However, Broadcom is better known for selling assets and growing through acquisitions, and deemed to be weaker on R&D.

With this in mind, analysts have said a deal between Qualcomm and Broadcom could have given Huawei the chance to take over the top spot in years to come – a situation US politicians wanted to prevent given their ongoing security concerns around Chinese telecom firms doing business with US carriers.

Others have said Mr Trump’s decision was more about competitiveness than security concerns.

“Given the current political climate in the US and other regions around the world, everyone is taking a more conservative view on mergers and acquisitions and protecting their own domains,” said Mario Morales, vice president of enabling technologies and semiconductors at global research firm IDC.

“We are all at the start of a race, and you have 5G as a crown jewel that everyone wants to participate in – and every region is racing towards that,” he told the BBC.

“Semiconductor technology and companies like Qualcomm will be an important weapon in that 5G arms race [and] the US like other nations and regions want to be first.”

Broadcom said it was reviewing the order and “strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns”.

The company had been pursuing San Diego-based Qualcomm for about four months.

Last week, however, Broadcom’s hostile takeover bid was put under investigationby the Committee on Foreign Investment in the US (CFIUS), a multi-agency body led by the US Treasury Department.

The US company had rejected approaches from its rival on the grounds that the offer undervalued the business, and also that any takeover would face antitrust hurdles.

Earlier this year, Chinese telecoms giant Huawei said it had not been able to strike a deal to sell its new smartphone via a US carrier, widely believed to be AT&T.

The US also recently blocked the $1.2bn sale of money transfer firm Moneygram to China’s Ant Financial, the digital payments arm of Alibaba.

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Source: BBC

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It claims that iPhones using chips by rivals, such as Intel, infringe six of its patents.

Qualcomm said it had asked the US International Trade Commission (ITC) to investigate and impose an import block.

It is the latest move in a series of disputes and lawsuits between Apple and Qualcomm.

In January, Apple filed two lawsuits against Qualcomm, claiming it had abused its dominant market position.

It also alleged the chip-maker had broken an agreement between the two companies, by denying Apple access to chip technologies it was entitled to use under the terms of a licensing deal.

The latest disagreement concerns six patents relating to energy-saving features on the iPhone, which Qualcomm says Apple has used without permission.

According to the news agency Reuters, Qualcomm has also filed a lawsuit seeking financial compensation from Apple.

“Apple continues to use Qualcomm’s technology while refusing to pay for it. These lawsuits seek to stop Apple’s infringement of six of our patented technologies,” the company said in a statement.

Apple referred the BBC to a previous statement on Qualcomm, in which it said the company’s business practices “harmed the entire industry”.

“They supply us with a single connectivity component, but for years have been demanding a percentage of the total cost of our products – effectively taxing Apple’s innovation”, it said.

“We believe deeply in the value of intellectual property but we shouldn’t have to pay them for technology breakthroughs they have nothing to do with.”

Qualcomm said it hoped the ITC would begin an investigation in August.

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Source: BBC

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The Korean Fair Trade Association said the firm had engaged in unfair business practices with its patent licensing and modem chip sales.

It also said Qualcomm had abused its dominant position in the chip market.

The California-based firm rejected the ruling and said it would appeal in court.

According to the regulator, Qualcomm limited or refused access to vital wireless technology patents for rivals in Korea, hindering sales at companies such as Samsung.

It also forced mobile phone makers into unfair agreements, the association said.

This involved requiring handset-makers to purchase comprehensive wireless technology licences, even when they did not need or use them.

KFTC secretary-general Shin Young-son said: “We investigated and decided on these actions because Qualcomm’s actions limit overall competition.”

The regulator also ordered Qualcomm to renegotiate deals with its partners if requested.

The company said it would appeal in Seoul’s high court and disputed the scale of the fine, the largest handed down by the regulator.

Qualcomm has faced scrutiny over its business practices in other countries. Last year it agreed to pay a $975m fine in China following an antitrust probe, while the European Union has accused it of anticompetitive behaviour.

Regulators in the US and Taiwan are also investigating the company.

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Source: BBC

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