18.03.07 Tech Spy Games

March 8, 2018
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Tech Spy Games?

High-stakes battle over bringing you faster internet

The US government is looking into the “possible” $117B takeover of US chipmaker Qualcomm by Singapore’s Broadcom.

What’s at stake? Potentially your internet access and the safety of our entire telecommunications system.

Why Such Drama?

  • Qualcomm = crown jewel of the United States tech industry.
  • Its chips are used in most mobile phones, and its semiconductors will be used in the next generation of ultrafast wireless networks known as 5G.
  • Whoever buys it, buys its competitive advantage AND literally a way “in” to our electronics.

“National Security Threat”

  • Trump AdministrationA warns of Broadcom’s foreign ties and risks of possible gov’t spying.
  • U.S. Govt intervention is unusual because the deal is not finalized.
  • If deal is de-railed by U.S., Broadcom has no option to appeal, according to CNBC.

WHY IT MATTERS

The U.S. Govt Fears…

*If* Broadcom takes over a major U.S. company (Qualcomm), leadership will prioritize short-term profits & cut back on research, causing America to lose its competitive advantage, especially in 5G (5G = 5th generation ultra-fast wireless connections) and allow Chinese competitors to gain ground.

Why Broadcom Says Critics Are Wrong

  • Promises to maintain 5G investment levels
  • Plans to move its company HQ to U.S.A by May 6.
  • 25K Broadcom employees will be here in the US = American jobs.
  • Creating a $1.5B investment fund to train American engineers

A new $229 smartphone — but the CIA, FBI & NSA warn Americans don’t buy it! Click for more on the China vs. US tech war.

by Jenna Lee,

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