IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

Yes

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 12 Mar 2018 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On March 12, 2018 President Trump signed an order blocking the proposed takeover of the U.S. multinational semiconductor and telecommunications equipment company Qualcomm Incorporated by Singapore-based Broadcom Limited. More precisely, the order states that, “The proposed takeover of Qualcomm by the Purchaser is prohibited, and any substantially equivalent merger, acquisition, or takeover, whether effected directly or indirectly, is also prohibited.” He took this action following a recommendation from the Committee on Foreign Investment in the United States, and under the authority granted him by the Defense Production Act of 1950 (as amended). According to the order,

There is credible evidence that leads me to believe that Broadcom Limited, a limited company organized under the laws of Singapore (Broadcom), along with its partners, subsidiaries, or affiliates, including Broadcom Corporation, a California corporation, and Broadcom Cayman L.P., a Cayman Islands limited partnership, and their partners, subsidiaries, or affiliates (together, the Purchaser), through exercising control of Qualcomm Incorporated (Qualcomm), a Delaware corporation, might take action that threatens to impair the national security of the United States[.]

 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

471 Electronic valves & tubes; electronic components; parts
8541 Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light emitting diodes; mounted piezoelectric crystals.
854110 Diodes, other than photosensitive or light emitting diodes
854121 With a dissipation rate of less than 1 W
854129 Other
854130 Thyristors, diacs and triacs, other than photosensitive devices
854140 Photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light emitting diodes
854150 Other semiconductor devices
854160 Mounted piezoelectric crystals
854190 Parts

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