Broadcom Grovels To Congress For Qualcomm Takeover Approval Pledging 5G Dominance

Broadcom's buyout of Qualcomm is likely to see even more delays

Broadcom's buyout of Qualcomm is likely to see even more delays

The Committee on Foreign Investment in the United States, which is now looking into whether a merger would harm national security, expressed concerns that a Broadcom takeover of Qualcomm would undermine U.S. efforts to stay ahead of China in the development of 5G tech.

Broadcom also stated that it would work with the government of United States as it drives to accomplish and sustain the global leadership in 5G.

Broadcom sought again to soothe United States security concerns around its bid for chipmaker Qualcomm on Wednesday, saying it would stick with investments aimed at maintaining the US's leadership in 5G technology.

Broadcom did not mention CFIUS in its announcement on Wednesday but said the company intends to "maintain the [research and development] resources Qualcomm devotes to 5G and innovation in future wireless standards".

Broadcom's controversial $117bn bid to acquire Qualcomm is hanging by a thread after U.S. authorities ordered a postponement of a critical shareholder meeting. We have a proven track record of investing in and growing core franchises in the companies we acquire.

The statement also promised to create a $1.5 billion fund with a focus on innovation to train and educate the next generation of USA engineers to ensure the country's lead in future wireless technology.

U.S. semiconductor giant Broadcom, who has been after buying smartphone chip from Qualcomm for quite some time, is likely to have to wait even longer thanks to management opposition and United States national-security concerns. One of it is that it has been providing funds to its R&D with licensing revenue derived from anticompetitive and predatory practices that have put it at odds with antitrust regulators and consumers.

"Ninety percent of Broadcom's shareholders are in the United States; in fact, we are largely owned by the same United States institutional investors that own Qualcomm".

The meeting, which had been scheduled for Tuesday, was supposed to determine whether Broadcom could move forward with the acquisition, which would be the largest technology deal in history.

Philippine Congress body backs bid to impeach chief justice