Broadcom Cosies Up To Trump

Posted November 04, 2017

Broadcom Chief Executive Officer Tan Hock joined Trump on Thursday (Nov 2) in the Oval Office for the announcement.

President Donald Trump again shined a spotlight on his efforts to put Americans back to work.

The president touted Broadcom Limited's decision to move its headquarters from Singapore to the US, bringing $20 billion in annual revenue and adding to the company's 7,000 workers already in America, as part of a trend.

Trump described the move as something "very special and very important" that would bring more than $20 billion in annual revenue back to the U.S.

"We will restore our competitive edge by reducing business taxes for the first time in more than 30 years", Trump said.

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"We expect the tax reform plan effectively to level the playing field for large multinational corporations headquartered in the United States and to allow us to go all in on USA redomiciliation", Tan said, in a press statement.

Bloomberg reports that Broadcom, which generates $13.3 billion in revenue and has a market capitalization of $109 billion, is pursuing an acquisition of San Diego-based Qualcom, which generates revenue of $22.3 billion and has a market capitalization of $87 billion. "But I am an American as are almost all my direct managers, my board members, and over 90 percent of my shareholders, so today we are announcing that we are making America home again".

A statement from Broadcom said the move will occur whether or not the tax reform bill passes but noted the final form and timing of the redomiciliation will be affected by any corporate tax reform. He said Broadcom would invest more than $3 billion per year in research and engineering and another $6 billion in manufacturing "creating high-paying tech jobs".

President Trump, flushed with the success of enticing Foxconn to Wisconsin, called Broadcom "one of the really great, great companies - they employ over 7,500 workers in many states across our country".