Broadcom says it will take 5G lead if it acquires Qualcomm, will invest $1.5 billion
Qualcomm has been the self-proclaimed leader in all things 5G connectivity. It has been working with networks on the infrastructure to haul and beam data to consumers and has been developing the chips those consumers need to receive the benefits of 5G.
With this week’s tit-for-tat with Broadcom surrounding a new investigation by a Treasury Department agency over its acquisition campaign, it should be noted that Qualcomm has also questioned if its counterpart would run its operation into the ground — Broadcom CEO Hock Tan’s profit regime is known to be an especially aggressive one.
To assuage that claim, Broadcom has announced that it will pledge to make the “US the global leader in 5G” if it acquires Qualcomm — Broadcom is currently domiciled in Singapore, but is looking to finalize reincorporation in the United States in the second quarter. It will also allot $1.5 billion to a fund to “train and educate the next generation of engineers in the US” and is promising to at least keep 5G research and development funding level or better.
“Importantly, Broadcom will fund enhanced R&D through lawful business practices rather than predatory and anticompetitive behavior,” the statement reads. “There is no truth to Qualcomm’s argument that its anticompetitive licensing practices are needed to fund a robust R&D effort.”
Qualcomm has not responded to Broadcom’s missive.