Last week saw Broadcom’s unexpected proposal to acquire chip making giant Qualcomm, in attempts to combine its resources to manufacture semiconductor content for smartphones. Broadcom, a company which significantly contributes to the making of Apple’s iPhones, offered a whopping $130 billion to acquire Qualcomm, and the latter company has rejected the offer.
Qualcomm, probably the biggest name when it comes to mobile chips, has made some strides on its own, dominating the smartphone market with its Snapdragon series of processors, plus its processors in Android smartwatches as well. In a statement released by the company, Qualcomm’s rejection of Broadcom’s “unsolicited” proposal was due to the fact that it is still confident in growing as a company, along with its ventures and pioneering of the upcoming 5G technology.
Qualcomm’s ongoing legal court battles behind the scenes with its main rival Apple might be what fueled Broadcom’s decision to acquire the company. The latter company has always been known to acquire other companies to venture into new markets, having acquired smaller companies nearly every single year since 1999.
It looks like Qualcomm will still be working independently for now, while Broadcom will continue manufacturing components for the big A.
