U.S. President Donald Trump is blocking Singapore-based Broadcom, maker of computer and smartphone chips, from taking over U.S. chipmaker Qualcomm.
Trump cited national security grounds in stopping the takeover, following the recommendation of the Committee on Foreign Investment in the United States (CFIUS). The committee reviews national security implications when foreign entities purchase U.S. corporations.
The president's order said there is "credible evidence" that the takeover "might take action that threatens to impair the national security of the United States."
Broadcom made an unsolicited bid last year to take over Qualcomm for $117 billion.
The company has been in the process of moving its legal headquarters from Singapore to the United States to help it win approval for the takeover.
Qualcomm, which is based in San Diego, has emerged as one of the biggest competitors to Chinese companies, such as Huawei Technologies, making it an attractive asset for potential buyers in the semiconductor industry.
Companies in the industry are racing against each other to develop 5G wireless technology to transmit data at faster speeds.