You are here: Home » Reuters » News
Business Standard

Broadcom promises on security, Qualcomm revamps board


By Arjun Panchadar

(Reuters) - Ltd has promised not to sell critical national security assets to foreign buyers if its deal to buy chipmaker Inc is approved, another effort by the Singapore-based firm to appease U.S. security concerns.

Separately, Inc said it discontinued the role of and named a new as it seeks to curry favour with shareholders ahead of a proxy fight with now slated for April 5.

also said would continue as its Horton has been a member of the company's board since December 2008, having previously served as of American Airlines Group Inc.

Broadcom's $117 billion bid for has warped into a complex fight over regulatory approvals, security nerves about China's influence on global and the best way forward financially for one of the world's dominant chipmakers.

In an open letter to the on Friday, promised to invest $3 billion in research and engineering and $6 billion in manufacturing in the annually. It did not say how those numbers compared with current spending by the two companies.

spent about $3.3 billion in 2017 on research and development and $2.7 billion in 2016, while Qualcomm's R&D investment was significantly higher with about $5.5 billion in 2017 and $5.2 billion in the year before that.

Qualcomm's annual shareholder meeting, now slated for April 5, was postponed by 30 days after the in the (CFIUS) this week ordered a national security review of the takeover.

The has raised concerns that Chinese companies, including the and Technologies, will take advantage of any openings to take the lead in the next generation known as 5G.

"will not sell any critical national security assets to any foreign companies," the letter said. "Of course, any dispositions of assets to foreign buyers would be themselves subject to CFIUS review."

(Reporting by and in Bengaluru; Editing by and Shounak Dasgupta)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, March 09 2018. 23:19 IST