Donald Trump has blocked a planned takeover of chipmaker Qualcomm by Singapore-based Broadcom.

Donald Trump

Donald Trump

The US President says he took the decision because he considers it to be a potential compromise of national security, suggesting that the much-discussed $140 billion (£100 billion) deal could lead to China pulling ahead in the 5G wireless race.

Despite this, Mario Morales - the vice-president of enabling technologies and semiconductors at research firm IDC - has argued that the decision to block the takeover was motivated more by competitiveness than security concerns.

He explained: "Given the current political climate in the US and other regions around the world, everyone is taking a more conservative view on mergers and acquisitions and protecting their own domains."

Mario said that the outspoken politician was determined not to lose ground in the 5G race.

Speaking to the BBC, he explained: "We are all at the start of a race, and you have 5G as a crown jewel that everyone wants to participate in - and every region is racing towards that.

"Semiconductor technology and companies like Qualcomm will be an important weapon in that 5G arms race [and] the US like other nations and regions want to be first."

In response to the decision to block the takeover, Broadcom has said that it disagrees with the choice of the President.

In a statement, the firm explained that it "strongly disagrees that its proposed acquisition of Qualcomm raises any national security concerns".

tagged in