The real thing behind Xiaomi, OPPO, and Vivo is against Broadcom's acquisition of Qualcomm

Xiaomi, Oppo and Vivo - three of China's largest smartphone makers, have protested against Broadcom Inc's acquisition of mobile chip company - Qualcomm Inc. These companies argue that the combination of the two giant chip companies will create a monopoly dominance, limiting innovation.

The three manufacturers said they were worried that the chip market research and development could be volatile, dominating if Broadcom took control of Qualcomm. If this acquisition agreement is made, Broadcom will dominate the market of wireless semiconductor products found in all smartphones.

Smartphone manufacturers rely heavily on Qualcomm's processors to support their devices. While companies like Samsung and Huawei can develop their own chipsets, most other manufacturers have to rely on such chips.

Lin Bin, co-founder of Xiaomi, said at an event sponsored by Qualcomm: "What we are most concerned about is if the acquisition is completed, will they continue to invest in the future? With investment, the entire industry will not grow well, so from this point of view, Xiaomi fully supports Qualcomm. "

Oppo said, although Broadcom has a reputation for financial acquisitions, it does not have many achievements in technology development. Managers at ZTE and Motorola's Motorola also voiced opposition to the acquisition.

This protest came a few days after several Chinese smartphone manufacturers signed an agreement to work with Qualcomm to develop fifth-generation wireless devices. They created an alliance that included both network equipment manufacturer ZTE Corp promises to make a fierce competition.

Qualcomm rejected the initial acquisition bid by Broadcom because it thought the price was inconsistent with the value of a large chip manufacturer like Qualcomm.

Broadcom has raised its acquisition price for Qualcomm to $ 130 billion by bringing its own management division to replace the current Qualcomm board in March next year.

Qualcomm's chief executive, Steve Mollenkopf, claims that the deal does not create a real path to Qualcomm's value. If the deal is reached, it will be the biggest acquisition ever in the high-tech sector. However, it does not seem easy to do that.

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