Broadcom pledged to make the US a global leader in 5G and set up a $1.5 billion fund to train engineers in future technologies should its Qualcomm takeover attempt be successful.
The move comes days after US authorities raised fears a takeover would hand the 5G initiative to China. In a statement, Broadcom said it had a proven track record of R&D and highlighted its commitment to “focus resources and strengthen leadership” in 5G under the Qualcomm brand.
It added Broadcom was “in every important respect an American company,” and is in the final stages of relocating to the US from Singapore – a process it expects to complete by 6 May.
Broadcom’s comments follow a lengthy war of words between Qualcomm’s board and Broadcom on the relative merits and risks of an acquisition. The US Committee on Foreign Investment in the US (CFIUS) waded into the argument earlier this week.
In a statement, CFIUS raised concerns any weakening of Qualcomm’s position in 5G development caused by a hostile takeover could “leave an opening for China to expand its influence on the 5G standard-setting process”.
“Given well-known US national security concerns about Huawei and other Chinese telecommunications companies, a shift to Chinese dominance of 5G would have substantial negative national security consequences for the US.”
Broadcom maintains a takeover of Qualcomm would not need clearance from CFIUS as the company would by then be a US company.
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