5G promises to be the solution to everyone's problems. For Broadcom, it's the potential key to completing its hostile takeover of fellow chip maker Qualcomm.
Broadcom, which makes chips for everything from set-top boxes to data centers, on Wednesday vowed to make the US a global leader in 5G, a next-generation cellular technology that's poised to boost wireless speeds, coverage and the ability to handle an ever more diverse deployment of connected devices. Qualcomm, which makes chips for smartphones and other mobile devices, has been at the forefront of 5G investment.
"Broadcom will not only maintain the R&D resources Qualcomm devotes to 5G and innovation in future wireless standards – we will also focus R&D spend to those critical technologies that are essential to the US," Broadcom said in a statement.
The company also pledged to create a $1.5 billion fund to train and educate engineers in the US.
The 5G pledge comes after a US government panel, the Committee on Foreign Investment in the US (CFIUS) expressed concerns about Broadcom's acquisition of Qualcomm and said. Typically when CFIUS weighs in with worries, that signals the end of a potential deal.
In this case, Qualcomm had rejected Broadcom's offer, noting that the sale price was too low.
Qualcomm declined to comment on Broadcom's Wednesday statement.
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