sunny.png
Sunday July 12th, 2020 6:11PM

Trump announces company's return to US

By The Associated Press
Related Articles
  Contact Editor

WASHINGTON (AP) — 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 want to thank you very much for choosing us," said Trump, who based much of his campaign on the promise of bringing jobs back to the U.S. from overseas. The change in legal address won't create directly create new jobs or plants in the U.S., but the company says it will boost its domestic research and engineering spending.

Broadcom makes semiconductor chips used for a variety of products, from cable set-top boxes to smartphones and other wireless devices.

It's rooted in one of the largest-ever tech industry acquisitions, when Singapore-based Avago Technologies Ltd. bought Broadcom Corp. for $37 billion last year. The deal made Broadcom Ltd. the parent company of both Broadcom Corp. and Avago Technologies. By joining forces, the rival chipmakers hoped to make a bigger dent in the rapidly growing market for wireless devices.

Nearly 20 percent of its revenue in the most recent fiscal quarter came from sales to Apple and the contractors that manufacture Apple products, such as the Foxconn Technology Group.

About half of its revenue comes from China-based distributors and manufacturers, though the end products are used around the world.

The Singapore Economic Development Board has awarded the company with tax breaks for having a major presence there, but the company warned in a recent regulatory filing that one of those benefits terminates in 2021, four years earlier than expected.

About 39 percent of Broadcom's employees are in Asia.

Broadcom has 7,500 U.S. employees across 24 states, the company said. It has manufacturing facilities in Colorado and Pennsylvania and engineering offices in California and traces its origins to bluechip American companies like Bell Laboratories, Lucent, and Hewlett-Packard.

"The proposed tax reform package would level the global playing field and allow us to compete worldwide from here in the United States," Tan said in a statement. "Our move would domicile our $20 billion annual revenue in the United States. From our base here, each year we will invest $3 billion in research and engineering and $6 billion in manufacturing, resulting in more high-paying tech jobs."

___

O'Brien, the AP technology writer, reported from Boston.

  • Associated Categories: Associated Press (AP), AP Online Headlines - Washington, AP Business, AP Business - Corporate News
© Copyright 2020 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Spain judge jails Catalan ministers, mulls leader's arrest
Spanish prosecutor seeks international arrest warrant for the former president of Catalonia and four of his ministers after they failed to appear in a Madrid court for questioning, while a judge has sent other ex-officials to jail
12:38PM ( 10 minutes ago )
UK's May replaces defense chief as harassment scandal widens
The resignation of Britain's defense secretary amid a growing sexual harassment scandal is a sign that the U.K.'s corridors of power are not always a comfortable place for women
12:35PM ( 12 minutes ago )
Scientists discover hidden chamber in Egypt's Great Pyramid
Scientists say they have found a previously undiscovered hidden chamber in Egypt's Great Pyramid of Giza, the first such discovery in the structure since the 19th century
12:23PM ( 24 minutes ago )
Associated Press (AP)
Due in court, Manafort attacks Russia probe indictment
The former campaign chairman for President Donald Trump is due back in court along with his business associate
12:00PM ( 48 minutes ago )
After long debate, work to begin on Eisenhower memorial
After years of public controversy and debate, work is finally beginning on a massive memorial to President Dwight Eisenhower
11:47AM ( 1 hour ago )
Spain prosecutor seeks arrest warrant for ex-Catalan leader
A Spanish prosecutor is seeking an international arrest warrant for the former president of Catalonia and four of his regional ministers after they did not comply with a summons ordering them to appear in a Madrid court
11:38AM ( 1 hour ago )
AP Online Headlines - Washington
Weinstein's ex-company wants sworn testimony from producer
Attorneys for the company co-founded by film mogul Harvey Weinstein say they want to depose him in a lawsuit he filed seeking his employment file and emails
11:50AM ( 57 minutes ago )
The Latest: Spain requests warrant for Catalan leader
A Spanish prosecutor has asked a National Court judge to issue an international arrest warrant for Catalonia's ousted regional president and four of his ex-ministers
10:58AM ( 1 hour ago )
House GOP tax overhaul keeps retirement rules
House Republicans are set to unveil their sweeping tax overhaul Thursday, making major changes, yet looking to preserve current tax rules for retirement accounts popular with middle-class Americans and to keep a top tax rate for the wealthiest earners.
10:40AM ( 2 hours ago )
AP Business
Spain judge jails Catalan ministers, mulls leader's arrest
Spanish prosecutor seeks international arrest warrant for the former president of Catalonia and four of his ministers after they failed to appear in a Madrid court for questioning, while a judge has sent other ex-officials to jail
12:38PM ( 10 minutes ago )
UK's May replaces defense chief as harassment scandal widens
The resignation of Britain's defense secretary amid a growing sexual harassment scandal is a sign that the U.K.'s corridors of power are not always a comfortable place for women
12:35PM ( 12 minutes ago )
Scientists discover hidden chamber in Egypt's Great Pyramid
Scientists say they have found a previously undiscovered hidden chamber in Egypt's Great Pyramid of Giza, the first such discovery in the structure since the 19th century
12:23PM ( 25 minutes ago )
The Latest: NYC officials praise school next to bike path
New York City officials are praising the staff and students at a high school next to the bike path where a deadly truck attack occurred
12:18PM ( 30 minutes ago )
The Latest: Judge jails ex-members of Catalan government
A Spanish judge has ordered nine ex-members of government in Catalonia jailed while they are investigated on possible charges of sedition, rebellion and embezzlement
12:14PM ( 34 minutes ago )