President Donald Trump issued an order Monday night to block any merger of chipmakers Broadcom and Qualcomm, saying it was necessary to protect national security. Broadcom's control over Qualcomm, the order says, could allow the Singapore-based company to "take measures that threaten to harm the national security of the United States."
Broadcom has been trying to buy Qualcomm for the past few months, but it has been continuously rejected. Since then he has tried to stack the Qualcomm board with friendly members. Trump's order says that Broadcom will not be able to buy or merge with Qualcomm in any way, and that all the people that Broadcom proposed to the Qualcomm board are disqualified.
It seems that Broadcom knew that Trump or his Justice Department could try to block the merger on these grounds. Trump has done it before, blocking a Chinese state-owned company from buying a US semiconductor company in September.
Broadcom is currently in the process of moving its Singapore headquarters to the US. UU., According to Bloomberg, the move was expected to be complete on April 3. With the move, Broadcom seems ready to fight against Trump's order. In a statement, the company said that "the national security concerns of the US are not a risk for the closure, since Broadcom never plans to acquire Qualcomm before completing redomiciliation."