Broadcom says it will return to U. S., cites tax proposal

WASHINGTON — Broadcom, a $ 100 billion semiconductor company from Singapore, will legally relocate its home address to the United States, President Trump announced Thursday.

Broadcom Ltd., which manufactures communications chips around the world, said it would relocate its legal address to Delaware once shareholders approve the move, bringing $ 20 billion in annual revenue back to the U. S. The move will allow Broadcom to avoid a cumbersome federal review process. Its official corporate headquarters will remain in San Jose.

The Oval Office announcement was tied to the release of congressional Republicans’ tax reform proposal, which would drastically reduce corporate rates and makes it easier for companies to deduct foreign taxes.

The company credits the GOP plan with making it easier to do business in the U. S. “America is once again the best place to lead a business with a global footprint,” Broadcom CEO Hock Tan said.

However, Broadcom’s move to the U. S. will take place regardless of whether the Republican plan passes, the company said.

A year ago, the company entered a $ 5.5 billion agreement to merge with U. S. network provider Brocade Communications Systems, but that has been delayed while it’s scrutinized by the Committee on Foreign Investment in the United States. The high- level government committee investigates proposed acquisitions of U. S. companies by foreign buyers on national security and intellectual property grounds.

The company makes semiconductor chips used for a variety of products, from cable set- top boxes to smartphones and other wireless devices.

It’s rooted in one of the largest tech industry acquisitions ever, when Singapore’s Avago Technologies bought Broadcom Corp. for $ 37 billion last year. The deal made Broadcom Ltd. the parent company of both Broadcom Corp. and Avago Technologies. By joining forces, the rival chipmakers hoped to make a bigger dent in the rapidly growing market for wireless devices.

Broadcom has 7,500 U. S. employees across 24 states, the company said. It has manufacturing facilities in Colorado and Pennsylvania and engineering offices in California and traces its origins to blue- chip American companies like Bell Laboratories, Lucent and Hewlett- Packard.