Qualcomm had previously rejected Broadcom's bids on the grounds that they significantly undervalued the company and fell short of regulatory antitrust requirements, although publicly the company remained open to a potential deal. Furthermore the candidates that Broadcom was running for Qualcomm's board of directors are barred from participating in that election, and Qualcomm can not accept their nominations.
In order to reduce USA national security concerns, Broadcom has made a decision to move its headquarters to the United States from Singapore by April.
Shortly after the CFIUS handed down its decision, Broadcom went on the attack, alleging that Qualcomm went behind its back and basically "cried" to the regulatory board to take action.
In his presidential order, Trump cited "credible evidence" that the takeover "threatens to impair the national security of the United States".
For its part, Broadcom said it's reviewing the order and strongly disagrees that the deal raises national-security concerns.
Qualcomm has emerged as one of the biggest competitors to China's Huawei Technologies in the semiconductor sector.
President Trump has blocked Broadcom's unsolicited, $117 billion takeover bid for Qualcomm, citing national security concerns. Tan argued that combining Broadcom and Qualcomm would further USA interests by advancing the development of the next generation of wireless technology known as 5G, according to a person familiar with the meeting.
President Trump issued a presidential order barring Broadcom from purchasing Qualcomm.
In an effort to alleviate these concerns, Broadcom has been rushing to redomicile (legally move the company) to the United States.
Trump and his administration have said that Qualcomm's role in moving America to the next generation of cellular communications called 5G is too critical to the health of the nation and its economy to tolerate any foreign interference.
"Qualcomm has become well-known to, and trusted by, the US government", said Deputy Assistant Secretary for Investment Security Aimen Mir.
The order also states that Broadcom will not be allowed to purchase or merge with Qualcomm in any way and that all of the people Broadcom has proposed to Qualcomm's board are disqualified.
That's why the U.S. Treasury-led Committee on Foreign Investment in the United States was able to get involved. Last week the president made official plans to put tariffs on imported steel and aluminum, saying foreign dumping was crippling USA steel and aluminum manufacturers and putting American national security at risk. Broadcom also promised not to sell off any "critical national security assets" to foreign firms.