If Singapore-based Broadcom gets the green light from U.S. regulators for the purchase of Qualcomm, the company says its prepared to spend $1.5 billion on making America the “global leader” in 5G.
CNBC reported the commitment is a response to concerns expressed from the Treasury’s Committee on Foreign Investment that a Broadcomm-Qualcomm merger could jeopardize national security and hurt the U.S. in the global race to 5G.
“Consistent with our commitment, Broadcom is pledging to create a new $1.5 billion fund with a focus on innovation to train and educate the next generation of engineers in the U.S.,” the company said in a statement.
Broadcom also says the company is in the final stages of re-domiciling to the U.S., with the process expected to be completed by early May of this year.
According to Reuters a source familiar with the committee’s reluctance to allow the merger (CIFUS) said the military worries in 10-years time “there would essentially be a dominant player in all of these technologies and that’s essentially Huawei.”
China’s Huawei continues to dominate European and Asian markets, leaving regulators nervous about losing control of U.S. semiconductor intellectual property. Could this be a sign of things to come for telecom companies looking to do international business?
Featured image: Broadcom via PR Newswire