Broadcom tries to appease US concerns
Print Edition
BROADCOM Ltd has promised not to sell critical national security assets to foreign buyers if its deal to buy chipmaker Qualcomm Inc is approved, another effort by the Singapore-based firm to appease US security concerns.
Separately, Qualcomm Inc said it discontinued the role of executive chairman and named a new non-executive chairman as it seeks to curry favor with shareholders ahead of a proxy fight with Broadcom now slated for April 5.
Qualcomm also said Tom Horton would continue as its lead director. Horton has been a member of the company’s board since December 2008, having previously served as chairman and chief executive officer of American Airlines Group Inc.
Broadcom’s US$117 billion bid for Qualcomm has warped into a complex fight over regulatory approvals and the best way forward financially for one of the world’s dominant chipmakers.
In an open letter to the US Congress on Friday, Broadcom promised to invest US$3 billion in research and engineering and US$6 billion in manufacturing in the United States annually. It did not say how those numbers compared with current spending by the two companies.
Broadcom spent about US$3.3 billion in 2017 on research and development and US$2.7 billion in 2016, while Qualcomm’s R&D investment was significantly higher with about US$5.5 billion in 2017 and US$5.2 billion in 2016.
Qualcomm’s annual shareholder meeting, now slated for April 5, was postponed by 30 days after the Committee on Foreign Investment in the United States last week ordered a national security review of the takeover.
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