Government says Broadcom bid for Qualcomm is a national security risk

The federal government said Broadcom’s proposed acquisition of rival chipmaker Qualcomm could pose a national security risk and called for a full investigation into the hostile bid.

The move complicates an already contentious deal and increases the likelihood that Broadcom, which is based in Singapore, will end its pursuit of Qualcomm. Such an investigation is often a death knell for a corporate acquisition.

A government panel, the Committee on Foreign Investment in the United States, noted, in part, that the potential risk was related to Broadcom’s relationships with foreign entities, according to a letter from a U.S. Treasury official.