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5G vows to be the solution to the problems of everyone. For Broadcom, it is the possible answer to completing the hostile takeover of the company of Qualcomm, its fellow chip maker.
Broadcom produces chips for everything – from set-top boxes to data centres. On Wednesday, the company promised vowed to make the United States a global leader in 5G, a next-generation cellular technology that is poised to improve wireless coverage, speeds, and the ability to manage an ever more distinct deployment of connected devices. On the other hand, Qualcomm produces chips for various smartphones and other mobile devices. It has been at the forefront of 5G investment.
In a statement, Broadcom stated: “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 also promised to create a fund amounting to $1.5 billion to educate and train engineers in the United States of America.
The 5G promise comes after the Committee on Foreign Investment in the US (CFIUS), a government panel in the United States, expressed its concerns regarding the acquisition of Broadcom of Qualcomm and said that such a deal could pose a risk for national security. Normally, when the CFIUS weighs in with worries, it already signals the end of a possible deal.
In this case, Qualcomm had rejected the offer of Broadcom, noting that the price of the sale was too low.
Qualcomm refused to issue a comment on the Wednesday statement of Broadcom.