Good morning, Cyber Saturday readers. What’s happening in the chip industry is more sensational than a soap opera.
The situation gets more complicated. The U.S. committee is less concerned about the firms’ geographies and more about their investment strategies.
(Broadcom, formerly headquartered in the U.S., is already seeking to repatriate.) The big issue for the committee is Broadcom’s “private equity”-style approach to management which, the regulatory body said in a letter, could mean reduced R&D investments in favor of “short term profitability.” Broadcom has attempted to assuage concerns by promising to fund innovation. Broadcom’s case is not helped, however, by its LBO-like raiding tactics.
The firm, which has vied for months to consummate its proposed deal, is leading an effort to replace six members of Qualcomm’s 11-person board of directors—a move that, if successful, may as well seal the tie-up. They are, one could argue, acting like barbarians at the logic gate.
Qualcomm’s management team, meanwhile, prefers to maintain its independence and pursue a $44 billion purchase of NXP Semiconductors, a Dutch chipmaker. And Intel, the big chip kahuna, isn’t sitting idly by either. Read more from fortune.com…
thumbnail courtesy of fortune.com