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Wednesday, March 07, 2018
Broadcom Pledges to Make the U.S. the Global Leader in 5G After Qualcomm Acquisition

Broadcom Ltd pledged on Wednesday to make the United States the global leader in 5G technology and maintain Qualcomm's investments in the area after any merger between the two companies.

Broadcom has a 50-year heritage of building leading communications technologies including Wi-Fi, broadband access, network switching and routing. The company said it would maintain the R&D resources Qualcomm devotes to 5G and innovation in future wireless standards, and would will also focus R&D spend to those critical technologies that are "essential to the U.S."

The Singapore-based company is pledging to create a new $1.5 billion fund with a focus on innovation to train and educate the next generation of engineers in the U.S.

Broadcom added it would fund enhanced R&D through lawful business practices rather than predatory and anticompetitive behavior.

"There is no truth to Qualcomm's argument that its anticompetitive licensing practices are needed to fund a robust R&D effort," Broadcom said.

"We are now in the final stages of redomiciling to the United States, and that process will be complete no later than May 6, 2018. When we complete our acquisition of Qualcomm, we expect to have more than 25,000 employees in the U.S., working to make Broadcom the leading communication semiconductor company in the world, "Broadcom added.

Broadcom's comments come as the U.S. government's Committee on Foreign Investment in the United States (CFIUS) has ordered a national security review of the proposed Qualcomm -Broadcom deal, saying a takeover can lead to lower R&D spending and weaken Qualcomm's competitive position against Chinese companies.

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