Industry caught off guard after Trump scuttles tech deal

FILE - In this Thursday, Nov. 2, 2017, file photo, Broadcom CEO Hock Tan speaks while U.S. President Donald Trump listens, in background, during an ev

NEW YORK (AP) — The decision by President Donald Trump to scuttle a hostile takeover by Singapore's Broadcom of the U.S. chipmaker Qualcomm caught some on Wall Street off guard.

Shares of Qualcomm slid 3 percent in early trading Tuesday.

Industry analysts speculate that Qualcomm's advanced work on 5G technology, which is expected to provide speeds needed to fuel the "internet of things," was the reason.

Trump said a takeover of Qualcomm would imperil national security, ending Broadcom's $117 billion buyout bid.

Kevin Cassidy, an industry analyst with Stifel Nicolaus, said Qualcomm is well ahead of foreign and domestic competitors in 5G technology.

Broadcom's attempted takeover came at a time when countries around the world are gearing up to build ultra-fast mobile networks that could tip the balance of power in technology.