The panel on Sunday ordered San Diego-based Qualcomm Inc (QCOM.O) to postpone its shareholder meeting by 30 days so it could investigate Broadcom's $117 billion hostile bid for Qualcomm. "Any notion that a combined Broadcom-Qualcomm would slash funding or cede leadership in 5G is completely unfounded". This is because CFIUS says that the acquisition by Singapore-based Broadcom Corp. This meeting will be held on March 23, the company said.
A USA national security panel has ordered Singapore-based chipmaker Broadcom (AVGO.O) to provide it with five business days' notice before taking any action toward redomiciling to the United States, three people familiar with the matter said on Friday.
Broadcom Ltd AVGO.O has promised not to sell critical national security assets to foreign buyers if its deal to buy chipmaker Qualcomm Inc QCOM.O is approved, another effort by the Singapore-based firm to appease USA security concerns.
Broadcom is also planning to create a 1.5 billion dollars fund with an aim at innovation to educate and train the next generation of RF engineers in the United States.
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A Qualcomm spokeswoman was not immediately available for comment.
CFIUS plans to further assess the proposed acquisition to evaluate the potential security threat. The review of Broadcom's bid illustrates the USA government's expanding focus on the competitiveness of the national semiconductor industry as China advances. Mir noted that Huawei and other Chinese companies have increased their investments in 5G technology and that Huawei owns about 10 percent of essential 5G patents.
Broadcom did not mention CFIUS in its announcement on Wednesday but said the company intends to "maintain the [research and development] resources Qualcomm devotes to 5G and innovation in future wireless standards".
"Broadcom is committed to making the USA the global leader in 5G", the company said in a statement. Each year it would invest 3 billion dollars in engineering and research and 6 billion dollars in manufacturing thereby resulting in more number of high-paying tech jobs in the U.S. For this it would also pay huge dollars in additional taxes to the U.S. Currently, it is in the finale of redomiciling to the US and as expected the process would be completed by 6th May 2018. "This means whatever Broadcom pays, the value of what they will get will be a fraction of that".