Now, with Qualcomm using the CFIUS investigation as reason to push back the shareholder vote on the acquisition until at least April, Broadcom is launching its own charm offensive and pledging to pour money into the United States research and education fields with its $1.5bn fund promise.
The inter-agency panel, which is chaired by the Treasury secretary, is also scrutinizing Broadcom's relationships with "third party foreign entities".
Qualcomm shareholders were set to vote on whether to hand control of the San Diego cellular technology company to Broadcom on Tuesday morning.
Broadcom's ongoing attempt to acquire Qualcomm, a deal that would be the largest tech merger in history, hit another roadblock this week when the USA government chose to intervene. "Entrusting this effort to a failing Qualcomm management who lacks the support of its owners, and that pays out much of its excess cash flow in fines as a result of serial lawbreaking, would not be in America's long-term interests".
"It is critical that Qualcomm stockholders know that Qualcomm did not once mention submitting a voluntary notice to CFIUS in any of its interactions with Broadcom to date, including in the two meetings on February 14, 2018 and on February 23, 2018".
Today (7 March), Broadcom issued a pledge to keep the U.S. at the forefront of emerging mobile technology like 5G if it were to acquire Qualcomm in an effort to dispel worries.More news: Eddie Hearn analyses Deontay Wilder's victory over Luis Ortiz
U.S. regulators have cited concerns over China's influence on the 5G standard-setting process in announcing an investigation into Singapore-based Broadcom's hostile takeover of Qualcomm.
Broadcom made its plans known as part of its ongoing efforts to acquire Qualcomm, which is already one of the leading developers of 5G technology for mobile-phone networks.
Broadcom said it is cooperating with the investigation. In a statement published Wednesday, the company hit back against the CFIUS statement and Qualcomm, while also offering an olive branch to try and appease regulators.
"CFIUS, during the investigation period, will continue to assess the likelihood that acquisition of Qualcomm by Broadcom could result in a weakening of Qualcomm's technological leadership in a manner that is detrimental to USA national security", the letter said.
Qualcomm also is a product supplier to the USA government and is working with it on cybersecurity for the next generation of wireless, 5G and the Internet of Things, according to the letter. Both trade on the Nasdaq.