Trump says Broadcom will move headquarters from Singapore to US

Broadcom CEO Tan Hock E. speaks after US President Donald Trump delivered remarks about the situation of the job market.
Broadcom CEO Tan Hock E. speaks after US President Donald Trump delivered remarks about the situation of the job market. PHOTO: REUTERS

WASHINGTON (BLOOMBERG) - President Donald Trump said semiconductor company Broadcom Ltd. is returning its headquarters to the United States from Singapore.

Broadcom chief executive officer Tan Hock joined Trump on Thursday (Nov 2) in the Oval Office for the announcement. Tan said the move to domicile the company in the US would bring US$20 billion (S$27 million) in revenue into the country.

The two men did not specify the site of the new main location. Broadcom's website lists San Jose, California, as an existing corporate co-headquarters and has done so since the present company was created in 2016 in one of the semiconductor industry's largest acquisitions when Avago Technologies acquired then-Broadcom Corp.

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. That deal, announced last November, has been delayed at least three times by the Committee on Foreign Investment in the US, a panel that reviews the security risks of foreign acquisitions of American companies.

Acquisitions have been key to Tan's strategy and he has played a central role in consolidation of the US$300-billion semiconductor industry over the last three years. 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. Tan has said he intends to seek more deals, a strategy that could be limited by opposition from US regulators.

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. Brocade reported sales of US$2.35 billion in 2016. Broadcom had 15,700 employees as of October 2016., according to regulatory filings.

Broadcom gets 54 per cent of its sales in China and 8.5 per cent from the US, according to data compiled by Bloomberg. About 76 per cent of its long-term assets are US based.