$20B Broadcom Coming Back to the US
Broadcom, a tech firm best known for making radio chips for the iPhone, is moving its legal headquarters from Singapore to the United States.
“Their move back to the United States is something very, very special and very important,” said Trump. “And you have been seeing this happen with numerous companies.”
President Trump made the announcement alongside Broadcom CEO Hock Tan on Thursday, not long after Republicans unveiled their overhaul of the tax plan.
“Thanks to you, Mr. President, business conditions have steadily improved,” said Tan. “We are making American home again.”
The move will create high-paying jobs and bring $20 billion in annual revenue back to the United States.
Tan credited the GOP’s tax plan as a reason for the move. Among other changes, the new tax plan would slash the corporate tax rate from 35% to 20%.
“The proposed tax reform package would level the global playing field and allow us to compete worldwide from here in the United States,” said Tan. “America is once again the best place to lead a business with a global footprint.”
Broadcom’s operating headquarters are in California, but the company reincorporated in Singapore two years ago for tax purposes.
In addition to saving money, moving back to the US will also help Broadcom gain regulatory approval for its proposed $5.9 billion purchase of American networking company Brocade.
The merger has been delayed multiple times by the Committee on Foreign Investment in the US (CFIUS), a panel that reviews the risks involved when a foreign company acquires an American company. That review will no longer be necessary if Broadcom becomes an American company.
Broadcom is also considering a $100 billion-plus acquisition of chipmaker Qualcomm Inc., which would have been all but impossible if the company remained in Singapore.
Editor’s note: This is a major fish for Trump who has promised to pull companies back to America. Could this be the beginning of a trend?