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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