Broadcom Says It Will Invest $1.5B In US to Win Qualcomm
Looking to assuage fears in the U.S. government, Broadcom today committed to creating a $1.5 billion fund that it will use to invest in technology and engineers. Broadcom claims part of its business model is to acquire companies and focus resources to strengthen that company's core franchise. In the case of Qualcomm, Broadcom says it will help the firm focus on 5G. "Broadcom has a proven track record of managing R&D for maximum impact and investing in core franchises. Broadcom will not only maintain the R&D resources Qualcomm devotes to 5G and innovation in future wireless standards — we will also focus R&D spend to those critical technologies that are essential to the U.S.," said Broadcom. The company's attempt to purchase Qualcomm has triggered a CFIUS review, which is often needed when foreign companies look to invest in or buy U.S. companies. The government wants to ensure a national security threat does not exist in Broadcom's plan, and will spend the next 30 days reviewing the proposed deal. Broadcom said it will use $1.5 billion to help train engineers and fund 5G research and development. Further, it claims it's efforts to repatriate from Singapore to the U.S. will be complete by May and it will have some 25,000 U.S. employees.
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Mar 5, 2018
The U.S. government ordered Qualcomm to cancel a vote scheduled for Tuesday to allow the government more time to review a potential merger between Qualcomm and Broadcom.
Huawei Says It's Not Giving Up On the US Market
Mar 30, 2018
Huawei plans to soldier on in the U.S. market despite recent setbacks.
Broadcom Now Says It Will Be a US Company By April 3
Mar 12, 2018
Broadcom has accelerated its plans to repatriate to the United States. The company today said its efforts to redomicile should be completed by April 3, rather than May 6.
Broadcom Makes More Promises to Appease US Regulators
Mar 9, 2018
Broadcom today said it won't sell anything considered a "critical national security asset" to foreign buyers if its proposed purchase of Qualcomm is approved by U.S. regulators.
FCC Chair Would Bar Use of Universal Service Fund to Buy Equipment from Companies that Pose Security Risks
Mar 26, 2018
FCC Chairman Ajit Pai wants to prevent the government and companies from using the Universal Service Fund to buy equipment from companies that represent a security threat to the U.S. "Threats to national security posed by certain communications equipment providers are a matter of bipartisan concern.