Broadcom is reportedly considering a takeover bid for Qualcomm; its main rival in the semiconductor business. The report puts the offer at US$100 billion (about RM420 billion), which makes this the biggest takeover of a chip maker if it happens.
Bloomberg reports that the unsolicited bid by Broadcom may be coming soon – as early as this week. This is on the back of news that Broadcom will be relocating its HQ from Singapore back to the USA.
This is not good news for Qualcomm, as it is still involved with another lawsuit with Apple and Samsung in regards to intellectual property disputes. If the takeover is successful, it will create the third largest chip maker in the world, behind Intel and Samsung.
Consolidation is inevitable in the industry with so few players, but will this buy-out result in less innovation in the long run? We will just have to wait and see the outcome of this potential takeover bid.
(Source: Bloomberg )