On March 9th, Beijing time, according to foreign media reports, the long-standing acquisition battle between Broadcom and Qualcomm has resulted in its first major fallout. Qualcomm announced that Paul Jacobs, the company's executive chairman, has been removed from his position. This move marks a significant shift in the company's leadership, as Jacobs is the son of Qualcomm’s founder, Irwin Jacobs, who co-founded the company in 1985.
In recent years, Qualcomm has faced intense competition in the semiconductor industry, but the most pressing challenge now comes in the form of Broadcom’s hostile takeover attempt. While the outcome of the potential deal remains uncertain, one thing is clear: the descendants of Qualcomm’s founding family will no longer hold control over the company’s future direction.
Qualcomm stated that the decision was made to ensure the company remains "blameless" during the ongoing acquisition process. Although Jacobs will still serve on the board, he is no longer the chairman. In his place, the board appointed Jeffrey W. Henderson as the independent, non-executive chairman. The impact of this change on Broadcom’s acquisition plans is yet to be seen.
Qualcomm’s chief director, Tom Horton, emphasized the importance of corporate governance, stating that appointing an independent chairman aligns with the best interests of the company and its shareholders. He also reiterated the company’s commitment to maximizing shareholder value and exploring all options, including the ongoing effort to acquire NXP Semiconductors.
Horton expressed gratitude for Jacobs’ long-term contributions to the company, acknowledging his dedication and service over the years.
Meanwhile, the U.S. government is closely monitoring the Broadcom-Qualcomm deal through the Foreign Investment Committee (CFIUS). The committee is currently assessing whether the transaction poses a threat to national security. Originally set for a 30-day review, the deadline may be extended to 75 days, adding more uncertainty to the situation.
Despite these challenges, Broadcom has shown determination to move forward with the acquisition. To address concerns from U.S. regulators, the company has signaled its willingness to invest $1.5 billion in training American engineers, aiming to strengthen the U.S. position in the global 5G market.
In a letter to Congress, Broadcom pledged that if the deal is approved, the combined company would not sell any critical national security assets to foreign entities. This step is seen as an attempt to reassure U.S. officials and gain support for the merger.
As the situation unfolds, both companies continue to navigate a complex regulatory landscape, with the outcome of the acquisition remaining highly uncertain.
PCBA OEM ,small pcb board,Audio Circuit Board,Pcb Board Production,Pcb Board Assembly
Dongguan Jinglin Communication Technology Co., Ltd. , https://www.jlpcba.com