Trump touts Broadcom's planned return to US

AP  Evan Vucci

AP Evan Vucci

Semiconductor giant Broadcom is reportedly exploring a deal to acquire rival Qualcomm, with news of the potential tie-up coming a day after its top executive made a high-profile visit to the White House to support President Donald Trump's tax plan and announce its relocation to the US.

"America is again the best place to lead a business with a global footprint", says Broadcom CEO Hock Tan, "thanks to you Mr. President, business conditions have steadily improved".

The company, which manufactures communications chips around the world, said it would relocate its legal address to DE once shareholders approve the move, bringing $20 billion in annual revenue back to the U.S. Its corporate headquarters will remain in San Jose.

The company, a leader in worldwide communications semiconductors with $100 billion market capitalization, is moving its entire operation to the US and locating its headquarters in Delaware.

The company, which manufactures communications chips worldwide, said the GOP's business-friendly tax plan will make the USA easier to do business in.

"We will restore our competitive edge by reducing business taxes for the first time in more than 30 years", Trump said.

The move would enable Broadcom to avoid a federal review process. "It means something again", Trump said.

President Trump, flushed with the success of enticing Foxconn to Wisconsin, called Broadcom "one of the really great, great companies - they employ over 7,500 workers in many states across our country".

Tan described Broadcom as "the embodiment of the legacy of innovation of three great American technology leaders: Bell Labs, Hewlett Packard, and more recently, Broadcom Corporation".

Broadcom Chief Financial Officer Tom Krause, said in the press statement that the returns Broadcom can drive by continuing to pursue the company's growth strategy outweigh increment taxes it expects to pay by redomiciling in the U.S.

"The proposed tax reform package would level the global playing field and allow us to compete worldwide from here in the United States", he added.

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