It is no secret that the mobile technology is one of the biggest industries in the world, as well as a fundamental pillar of the global economy. Often when we think of the mobile technology industry, our minds turn towards the likes of Apple Inc. (NASDAQ:AAPL), Samsung Electronics Co Ltd (KRX:005930) and Google. However, while these companies might make up the glamorous face of this enterprise, the true beating heart of the industry is something else entirely. I am, of course, referring to chip manufacturers. These companies create and manufacture the SoCs (System on a Chip), modems, WiFi and Bluetooth chips and many more vital components that form the very basis of modern mobile devices.
Earlier this week, the entire industry was left stunned when Broadcom Limited (BMV:AVGON) made a formal buyout offer for QUALCOMM, Inc. (NASDAQ:QCOM) to the amount of $105 billion. While there had been rumours circulating for days prior, the sheer scale and ambitiousness of the offer have undoubtedly turned several heads. For one, were this deal to go through, it would mark the largest acquisition in the history of the technology industry, dwarfing the $67 billion take over of EMC by Dell in late 2016.
Despite this detail, the sheer monetary scale of the deal might be the least interesting facet of the deal. Due to the nature of the industry, and the two entities involved in the deal, the long and short-term consequences of this merger promise to be immense. However, we dwell deep to find that out it’s important to have a quick look at the involved parties.
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