In order to dispel the concerns of the US regulatory authorities, Broadcom said today that it plans to invest US$1.5 billion to train American engineers so that the United States can lead the global 5G market.
Broadcom’s move aims to dispel the concerns of the US Treasury Department and win the acquisition of Qualcomm. The US Treasury Department issued an open letter to lawyers of Qualcomm and Broadcom yesterday, saying that the acquisition of Qualcomm by Broadcom may pose a threat to US national security.
The U.S. Treasury Department stated in its letter that, based on historical records, Broadcom usually cuts off investments after it acquires a company, which will pose a threat to the national security of the United States. In the letter, the US Treasury Department also talked about Huawei, saying that Huawei is actively involved in the formulation of the 5G standard. If Qualcomm’s “leading role†in the 5G market is replaced by Huawei, it may pose a threat to the United States.
To this end, Broadcom made a decision today to invest 1.5 billion U.S. dollars to train U.S. engineers so that the U.S. can take a leading position in the global 5G market.
According to reports, the Foreign Investment Committee (CFIUS) affiliated to the US Treasury Department has realized that Broadcom has acquired potential security threats to Qualcomm, and will therefore conduct a comprehensive assessment. The annual general meeting of shareholders of Qualcomm scheduled to be held yesterday was also halted and postponed to the next. Held in a month.
According to industry sources, CFIUS may block the deal. In addition, the current situation also forced Broadcom to postpone the plan to relocate its headquarters to the United States.
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