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Tech CEO Announces Company's Relocation to US: 'Make America Home Again'

02 November 2017

Semiconductor maker Broadcom (AVGO) said Thursday it will move its headquarters back to the USA, a decision that President Donald Trump touted as a win for American workers.

Broadcom corporate headquarters are already located in San Jose, Calif., but it will relocate its legal address from Singapore to DE once shareholders approve the move.

He said his rollback of federal regulations and pro-business policies had helped spur the move, and that the tax reform package unveiled Thursday would do more to lure companies back to America.

By becoming a US -based company, Broadcom would avoid the CFIUS process. The company's $5.5 billion acquisition of American networking company Brocade has been held up by the Committee on Foreign Investment in the U.S. The high-level government committee, familiarly known as CFIUS, investigates proposed acquisitions of U.S. companies by foreign buyers on national security and intellectual property grounds.

It's rooted in one of the largest-ever tech industry acquisitions, when Singapore-based Avago Technologies Ltd. bought Broadcom Corp. for $37 billion a year ago. We know have had two straight quarters of three percent or more economic growth.

Trump mentioned that he hopes to see Broadcom's United States payroll grow from its current 7,500 employees.

About half of its revenue comes from China-based distributors and manufacturers, though the end products are used around the world.

Analyst Tom Diffely of D.A. Davidson & Co., says many Asian companies are finding it harder to acquire US firms due to Trump era regulation issues.

The company, which is a major supplier to Apple Inc., has built itself from a former division of Hewlett-Packard into one of the industry's largest chipmakers via a string of purchases.

Broadcom had annual revenue of $14.9 billion in 2016 and that total is forecast to rise to $18 billion in 2017, according to analysts' estimates.

"From this base here in the United States, each year we will invest over $3 billion a year in research and engineering and another $6 billion a year in manufacturing, creating high paying tech jobs", Tan said.

Tech CEO Announces Company's Relocation to US: 'Make America Home Again'