Broadcom's Bid for Qualcomm Ignites Debate Within Administration

Members of a U.S. national security panel are locked in a dispute over a hostile takeover bid for chip giant Qualcomm Inc., QCOM -0.06% pitting officials in the departments of Justice and Defense against Treasury Secretary Steven Mnuchin. In a meeting Tuesday, members of the Committee on Foreign Investment in the U.S., known as CFIUS, debated whether the panel has the right to weigh in on Singapore-based Broadcom Ltd.'s AVGO -1.28% bid of $117 billion for Qualcomm before a deal is struck, according to people briefed on the matter. Qualcomm is a leader in semiconductor technology and the development of standards for 5G, the next generation of wireless technology that could enable self-driving cars and other innovations. Some members are concerned that if Broadcom buys Qualcomm, it could sell parts of the company and hobble American prospects of eclipsing China in the race to develop the technology, the people familiar with the matter said. CFIUS, which can advise the president to block takeovers by foreign companies on national security grounds, is chaired by the Treasury Department and includes members from other agencies, including Justice, Homeland Security, Defense and Energy.