The renowned Taiwanese manufacturer Foxconn (contracted by Apple to make iPhones) just made a power move. Foxconn spent $866 million to acquire Belkin, which also reunites brands like Linksys, famed for Internet routers, and WeMo, a smart home devices maker.
The huge deal is part of a move for Foxconn to increase its presence in the United States, where it also plans to spend at least $9 billion to build a facility in Wisconsin and rival IoT makers like Nest.
However, the deal still needs to be approved by the Committee on Foreign Investment in the United States (CFIUS) before it becomes a reality. As Donald Trump recently blocked Broadcom’s $17 billion acquisition of Qualcomm, the Foxconn-Belkin merger has a chance to be denied.
“The Purchaser and Qualcomm shall immediately and permanently abandon the proposed takeover. Immediately upon completion of all steps necessary to terminate the proposed takeover of Qualcomm, the Purchaser and Qualcomm shall certify in writing to the Committee on Foreign Investment in the United States (CFIUS) that such termination has been effected in accordance with this order and that all steps necessary to fully and permanently abandon the proposed takeover of Qualcomm have been completed,” said the official directive.
National security concerns and growing suspicion when it comes to any and almost all foreign tech is nothing new in the US.
Verizon and AT&T suddenly stopped carrying Huawei phones, Kaspersky antivirus software was banned at a government level and who knows what’s next? If the famed wall can’t be built in Mexico, perhaps the next best place is in the digital landscape.