Qualcomm just got through fending off one deal. And yet it can’t seem to complete its own attempt at an acquisition.
The mobile chip giant has spent the past year and a half attempting to acquire Netherlands-based NXP Semiconductors, which makes chips for the automotive industry and digital networks. The deal is critical to Qualcomm expanding beyond its core business of making chips for your smartphones, a healthy business that’s beginning to slow.
That hit a snag on Thursday after Qualcomm and NXP said they had withdrawn its request for regulatory approval from China’s Ministry of Commerce (Mofcom), and will refile the application. The companies jointly filed an extension on the deal, something they have done frequently as the deal’s approval continues to lag.
The move comes amid an escalating trade war between China and US, from the raising of tariffs to USregulatory moves against Chinese smartphone makers Huawei and ZTE.
Qualcomm has reportedly begun laying off employees as part of a strategy to cut $1 billion in costs.