Date
23 July 2018
Broadcom has pledged US$1.5 investment in the US as it faces regulatory scrutiny over its takeover bid for American chipmaker Qualcomm. Photo: Reuters
Broadcom has pledged US$1.5 investment in the US as it faces regulatory scrutiny over its takeover bid for American chipmaker Qualcomm. Photo: Reuters

Broadcom moves to ease US concerns over 5G investment

Broadcom sought to soothe US security concerns related to its bid for chipmaker Qualcomm, saying on Wednesday that it remains committed to investments aimed at making the United States a leader in 5G technology.

“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 US,” Broadcom said in a statement, Reuters reports.

The Singapore-based firm promised to create a US$1.5 billion fund with a focus on innovation to train and educate the next generation of US engineers to ensure the country’s lead in future wireless technology.

The announcement came after a US government panel stepped into Broadcom’s hostile takeover bid for Qualcomm this week, citing a number of concerns around the development of the next generation of mobile networks and technology, Reuters noted.

 

The Committee on Foreign Investment in the United States (CFIUS) delayed a shareholder meeting that had threatened to hand Broadcom control of the Qualcomm board and, among other things, said lower R&D spending would weaken US-based Qualcomm against Chinese companies. 

 

It said that Broadcom’s recent statements and its history in other buyouts suggested the heavily-leveraged US$117 billion bid for Qualcomm would lead to a reduction in investment in favor of short-term profits.

 

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CG/RC

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