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Hock Tan, chief executive officer of Broadcom
Broadcom is pledging to make the U.S. the “global leader” in 5G cellular with a $1.5 billion investment if the company’s proposed acquisition of Qualcomm is allowed by the U.S. government to go through, the company said Wednesday.
“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.,” the company said in a statement.
U.S. officials this week deemed a potential merger of the rival chipmakers a national security risk and a threat to the country’s standing in the race to 5G.
The review by CFIUS — the U.S. Treasury’s Committee on Foreign Investment in the United States — has already delayed a proxy vote by a month and could force Broadcom to abandon its bid.
The company, currently based in Singapore, is in the process of re-domiciling in the U.S. and pledged Wednesday to create “a stronger combined American company” in its purchase of Qualcomm.
