Published: Sat, November 04, 2017
World Media | By Shelia Harmon

Broadcom Cosies Up To Trump

Broadcom Cosies Up To Trump

Broadcom Limited manufactures communications chips.

Tan pointed to hard conditions for running a business as the reason Broadcom had moved overseas, but he said the company's identity has remained American.

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

The White House said that Broadcom will transfer the legal domicile of its main headquarters to DE, a move that will allow the United States to benefit from the more than $20 billion in annual income earned by the firm.

President Donald Trump is calling chipmaker Broadcom "one of the really great, great companies" after the company made the decision to recamp its incorporation from Singapore to the United States.

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

"Their move back to the United States is something very, very special and very important, and you have been seeing this happen with numerous companies", he said.

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.

Tan, who also spoke at the event, said Broadcom's move to "redomicile" in the USA would bring in $20 billion of annual revenues into the country. It has manufacturing facilities in Colorado and Pennsylvania and engineering offices in California and traces its origins to bluechip American companies like Bell Laboratories, Lucent, and Hewlett-Packard.

Tan argued that the Republican tax reform plan will level the global playing field and allow Broadcom to compete effectively in worldwide markets.

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