$100 bln semiconductor firm leaves Singapore for US

$100 bln semiconductor firm leaves Singapore for US

$100 bln semiconductor firm leaves Singapore for US

Broadcom Limited manufactures communications chips.

Broadcom Chief Executive Officer Hock Tan told reporters: "America is again the best place to lead a business with a global footprint".

The company, which manufactures communications chips around the world, said it would relocate its legal address to DE once shareholders approve the move.

President Trump announced Thursday that a major semiconductor device manufacturer is moving back to the USA - chalking it up to pro-business policies and the tax reform proposal that he said will restore America's competitive edge.

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. "We're looking forward to seeing that number grow very substantially, which it is now anticipated to do".

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A statement from Broadcom said the move will occur whether or not the tax reform bill passes but noted the final form and timing of the redomiciliation will be affected by any corporate tax reform.

The president said his administration is seeking to encourage companies to bring their operations back to the U.S.by cutting regulations and crafting tax reform legislation.

Tan's visit to the White House comes as his company struggles to get regulatory approval for its US$5.9 billion purchase of Brocade Communications Systems Inc.

Broadcom traces its origins to blue-chip American companies like AT&T, Bell Laboratories, Lucent, and Hewlett-Packard. "The proposed tax reform package will level the global playing field and allow us to compete effectively in worldwide markets", he said.

Broadcom had annual revenue of US$14.9 billion in 2016 and that total is forecast to rise to US$18 billion in 2017, according to analysts' estimates. He said Broadcom would invest more than $3 billion per year in research and engineering and another $6 billion in manufacturing "creating high-paying tech jobs".

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