CHECKMATE: Taiwan could ensure the long-term survival of its technology industry if Broadcom acquires Qualcomm, because the deal requires government approval

Taipei Times
Date: Jan 03, 2018
By: Ted Chen  /  Staff reporter

Taiwan’s technology companies yesterday urged the government to take heed of Broadcom Ltd’s bid to acquire Qualcomm Inc, as the deal could have a significant affect on the sector.

Broadcom in November last year made an unsolicited US$105 billion offer to acquire Qualcomm, launching what would be the largest-ever technology takeover battle.

The deal could affect Taiwan’s semiconductor industry, including chip manufacturing, integrated circuit packaging, as well as information and communications technologies industries, the Allied Association for Science Park Industries said in a statement yesterday.

If combined, the two US companies could control half of the global market share for chips used in consumer electronics, granting them undue influence and bargaining power against suppliers, the association said, adding that this dominance would further pressure the profitability of local technology companies and affect the nation’s growth prospects.
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