Broadcom Pledges $1.5 Billion U.S. Investment to Ease Regulatory Scrutiny
In a move to ease regulatory concerns, Broadcom Ltd. has committed to making the United States a leader in 5G technology with plans to invest $1.5 billion in training American engineers, reports the Wall Street Journal (March 7, Moise). The announcement comes after the U.S. Treasury, which chairs the Committee on Foreign Investment in the United States (CFIUS), sent a letter scrutinizing Singapore-based Broadcom's $117 billion hostile takeover of California-based Qualcomm Inc. Among the fears from CFIUS was a merger would result in reduced investment in research and development, paving the way for Chinese rivals to gain influence over 5G technology's future. Over the weekend, CFIUS ordered Qualcomm to delay its annual shareholder meeting by 30 days so it would give the panel sufficient time to review the takeover bid.
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