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Trump announces company's return to US
A $100 billion semiconductor company based in Singapore will legally relocate its home address to the United States, President Donald Trump announced Thursday.
Broadcom Limited, which manufactures communications chips around the world, said it would relocate its legal address to Delaware once shareholders approve the move, bringing $20 billion in annual revenue back to the U.S. The move will allow Broadcom to avoid a cumbersome federal review process.
The Oval Office announcement was tied to the release of congressional Republicans' tax reform proposal, which would drastically reduce corporate rates and makes it easier for companies to deduct foreign taxes.
The company credits the GOP plan with making it easier to do business in the U.S. "America is once again the best place to lead a business with a global footprint," Broadcom CEO Hock Tan said.
However, Broadcom's move to the U.S. will take place regardless of whether the Republican plan passes, the company said.
A year ago, the company entered a $5.5 billion agreement to merge with U.S. network provider Brocade Communications Systems, but that has been delayed while it's scrutinized by the Committee on Foreign Investment in the United States. The high-level government committee, familiarly known as CFIUS, investigates proposed acquisitions of U.S. companies by foreign buyers on national security and intellectual property grounds.
By becoming a U.S.-based company, Broadcom can avoid the CFIUS process. Broadcom's corporate headquarters will remain in San Jose, California.
I have seen the Committee on Foreign Investment mentioned more during the past couple of weeks than in the rest of my life.
Trump announces company's return to US
A $100 billion semiconductor company based in Singapore will legally relocate its home address to the United States, President Donald Trump announced Thursday.
Broadcom Limited, which manufactures communications chips around the world, said it would relocate its legal address to Delaware once shareholders approve the move, bringing $20 billion in annual revenue back to the U.S. The move will allow Broadcom to avoid a cumbersome federal review process.
The Oval Office announcement was tied to the release of congressional Republicans' tax reform proposal, which would drastically reduce corporate rates and makes it easier for companies to deduct foreign taxes.
The company credits the GOP plan with making it easier to do business in the U.S. "America is once again the best place to lead a business with a global footprint," Broadcom CEO Hock Tan said.
However, Broadcom's move to the U.S. will take place regardless of whether the Republican plan passes, the company said.
A year ago, the company entered a $5.5 billion agreement to merge with U.S. network provider Brocade Communications Systems, but that has been delayed while it's scrutinized by the Committee on Foreign Investment in the United States. The high-level government committee, familiarly known as CFIUS, investigates proposed acquisitions of U.S. companies by foreign buyers on national security and intellectual property grounds.
By becoming a U.S.-based company, Broadcom can avoid the CFIUS process. Broadcom's corporate headquarters will remain in San Jose, California.
I have seen the Committee on Foreign Investment mentioned more during the past couple of weeks than in the rest of my life.