Looking to assuage fears in the U.S. government, Broadcom today committed to creating a $1.5 billion fund that it will use to invest in technology and engineers. Broadcom claims part of its business model is to acquire companies and focus resources to strengthen that company’s core franchise. In the case of Qualcomm, Broadcom says it will help the firm focus on 5G.
“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.,” said Broadcom.
The company’s attempt to purchase Qualcomm has triggered a CFIUS review, which is often needed when foreign companies look to invest in or buy U.S. companies. The government wants to ensure a national security threat does not exist in Broadcom’s plan, and will spend the next 30 days reviewing the proposed deal. Broadcom said it will use $1.5 billion to help train engineers and fund 5G research and development.
Further, it claims it’s efforts to repatriate from Singapore to the U.S. will be complete by May and it will have some 25,000 U.S. employees.
