Trump announces company's return to US
Broadcom Limited, which manufactures communications chips around the world, said it would relocate its legal address to Delaware once shareholders approve the move, bringing USD 20 billion in annual revenue back to the US.
Broadcom's corporate headquarters will remain in San Jose, California.
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 US.
Broadcom's move to the US will take place regardless of whether the Republican plan passes, the company said. The company's USD 5.5 billion acquisition of American networking company Brocade has been held up by the Committee on Foreign Investment in the United States. The high-level government committee, familiarly known as CFIUS, investigates proposed acquisitions of US companies by foreign buyers on national security and intellectual property grounds.
By becoming a US-based company, Broadcom would avoid the CFIUS process.
"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 USD 20 billion annual revenue in the United States. From our base here, each year we will invest USD 3 billion in research and engineering and USD 6 billion in manufacturing, resulting in more high-paying tech jobs.
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