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ExtraBITS for 19 March 2018

We have only one ExtraBIT this week, in which analyst Ben Thompson explains why the United States blocking Broadcom’s acquisition of Qualcomm might be a good thing.

Why Blocking Broadcom’s Acquisition of Qualcomm Might Be a Good Thing — President Trump has nixed Singapore-based Broadcom’s purchase of American chipmaker Qualcomm on national security and protectionist grounds, although Broadcom had promised to relocate to the United States. Analyst Ben Thompson explains why he thinks this was the right move. In short, Broadcom had made it clear that it planned to focus on Qualcomm’s past patents instead of producing new technology with the company’s resources. This would have reduced competition with Chinese companies in future mobile
developments — 6G and beyond — and thus potentially left the United States at a technological disadvantage.

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