Even after losing Qualcomm, Broadcom went ahead with its now-completed US redomiciliation
It’s too late now for semiconductor giant Broadcom to convince President Trump the company’s broad operations pose no threat to US national security, but for what it’s worth, the retired Qualcomm bidder has officially delivered on its promise from a few months back. Yesterday’s completion of the redomiciliation process could go a long way in smoothening potential future acquisitions of smaller American companies by this clearly ambitious designer, developer and global supplier of digital and analog semiconductor connectivity solutions.
For the time being, Broadcom merely insists on the obvious and direct impact of its actions on the US economy, highlighting “several hundred million dollars” will be paid in additional domestic taxes, with $3 billion annually to be invested in research and engineering, and another $6 billion in manufacturing.
No words on any strategic, long-term goals, like perhaps a renewal of buyout negotiations with current chip-making rival Qualcomm. Just a repeat of previous CEO Hock Tan statements about America “once again” being “the best place for Broadcom to do business.” Also, a reminder that the company was already American “in every respect but our legal domicile.”
Said domicile has been moved from Singapore to Delaware, and the existing San Jose, California co-headquarters is now the company’s “sole headquarters as a U.S. corporation.” Employees, “day-to-day business and operations”, and services to customers will not be impacted in any meaningful way by the redomiciliation procedure. It’s basically all a formality, but one that could have helped Broadcom close its Qualcomm acquisition.