Broadcom CEO Hock Tan has promised more investment as part of the company’s strategy to get support for the $117 bid to acquire Qualcomm – from the US Congress.
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Broadcom in a letter said that it is committed to making the United States the global leader in 5G technology. The company promised that the combined Broadcom-Qualcomm would not slash funding or would not give up leadership in 5G.
Broadcom will be creating a $1.5 billion fund with a focus on innovation to train and educate the RF engineers in the United States ensuring America’s leadership in wireless technology in coming year.
Broadcom, which is under scrutiny of the US government, said it will not sell any critical national security assets to any foreign companies.
# $1.5 billion fund with a focus on innovation
# $3 billion in research and engineering each year
# $6 billion in manufacturing each year
Broadcom claims that Qualcomm faces challenges that hamper its role in developing 5G for the future. Qualcomm has been funding its R&D with licensing revenue derived from predatory and anti-competitive practices that have put it at odds with customers and antitrust regulators.
The company said there is no truth to Qualcomm’s argument that its licensing practices are needed to fund a robust R&D effort. Qualcomm also has seen significant revenue declines during a period of strong industry growth and has underperformed its peers in revenue, gross profit and net income.
American citizens are leading Broadcom management. Nearly all American citizens are part of the board of Broadcom. 90 percent of Broadcom’s shareholders are in the United States. Broadcom is largely owned by the same United States institutional investors that own Qualcomm.
More than half of Broadcom’s total workforce is in the United States, across more than 25 states, including Texas, Colorado, California and Pennsylvania. “When we complete our acquisition of Qualcomm, we expect to have more than 25,000 employees in the United States,” Broadcom said.
The company is managed from its headquarters in San Jose, California. Broadcom is in the final stages of re-domiciling to the United States, and expect this process will be completed no later than May 6, 2018.
Broadcom will invest $3 billion in research and engineering and $6 billion in manufacturing each year, resulting in more high-paying tech jobs in the United States.