One of President Donald Trump’s signature campaign pledges was to bring jobs back to America from overseas. Since taking office, President Trump has been more proactive in encouraging companies to create US jobs than perhaps any of his predecessors.
On Thursday, the White House announced another major win for American workers. As reported by The Washington Post, President Trump hosted an event with Broadcom Limited CEO Hock Tan, in which Tan announced his corporation would be moving its headquarters back to the US from Singapore, spurring billions of dollars of annual revenue to the United States–including investment in research and manufacturing.
President Trump posted a video of the announcement on Twitter, remarking “Broadcom’s move to America=$20 BILLION of annual rev into U.S.A., $3+ BILLION/yr. in research/engineering & $6 BILLION/yr. in manufacturing.”
Broadcom’s move to America=$20 BILLION of annual rev into U.S.A., $3+ BILLION/yr. in research/engineering & $6 BILLION/yr. in manufacturing. pic.twitter.com/NsJ4PtVTtl
— Donald J. Trump (@realDonaldTrump) November 2, 2017
Broadcom is one of the world’s leaders in semiconductor technology, supplying technology to companies like Apple and Foxconn. Although more than half of Broadcom’s sales are made in China, the final products made from its equipment are shipped all around the world.
The current Broadcom Limited, listed on the NASDAQ as AVGO, is the result of one of the industry’s largest mergers, where Tan’s Singapore-based Avago Technologies acquired Broadcom Corp. for $37 billion in 2015.
Tan’s announcement comes at a time when Broadcom Limited is in the middle of seeking approval for its $5.9 billion purchase of Brocade Communications Systems Inc. Announced last year, the acquisition has been delayed three times by the Committee on Foreign Investment in the United States (CFIUS).
CFIUS reviews potential national security risks posed by foreign acquisitions of American companies. The panel is chaired by the US Treasury Secretary and comprised of 16 US departments and agencies, including the Departments of State and Defense.
With its headquarters in the US, Broadcom would be able to bypass the CFIUS approval process required for foreign companies. Tan has not yet revealed where Broadcom’s central office would be located, although their website lists San Jose, California, as an existing corporate co-headquarters.
Tan also attributes his company’s decision to the GOP tax reform package revealed Thursday, ABC News reports. According to Breitbart, the House bill will permanently and immediately cut the corporate tax rate from 35 percent to 20 percent. The bill will also seek to eliminate incentives for corporations to avoid repatriating their funds by imposing a one-time, 12 percent tax on profits held abroad. Additionally, illiquid corporate taxes will be taxed at a rate below 5 percent.
“The proposed tax reform package would level the global playing field and allow us to compete worldwide from here in the United States,” Tan said. “Our move would domicile our $20 billion annual revenue in the United States. From our base here, each year we will invest $3 billion in research and engineering and $6 billion in manufacturing, resulting in more high-paying tech jobs.”
Broadcom Limited is moving their headquarters to the US. Will this help make America great again?
Broadcom currently has 7,500 employees in the US, spread out across 24 states. It runs manufacturing plants in Colorado and Pennsylvania, as well as engineering offices in California.
As The Washington Times noted, unemployment has gone down under President Trump. October’s jobs report showed unemployment at 4.1 percent–the lowest in 17 years. As The Los Angeles Times reports, President Trump has vowed to be “the greatest jobs president that God ever created.” The numbers will speak for themselves.