猪却被人偷了！
EDB有苦说不出
Broadcom, EDB say operations in Singapore unaffected by relocation plans The Republic remains the preferred Asian location for global companies Published　　8:55 AM, November 03, 2017　　 Updated　10:47 AM, November 04, 2017　 SINGAPORE — Plans for a US$100 billion (S$136 billion) semiconductor company to move its legal headquarters from Singapore back to the United States will not affect its operations here, the firm as well as Singapore’s Economic Development Board (EDB) said on Friday (Nov 3).
Broadcom Limited, which manufactures communications chips around the world, said it would relocate its legal address to Delaware once shareholders approve the move, bringing US$20 billion in annual revenue back to the US. The move, announced by US President Donald Trump on Thursday, will allow Broadcom to avoid a cumbersome federal review process.
In an email to Broadcom's employees, the company's　chief executive Hock Tan　said the firm's operations and staff, including those in Singapore, would not be affected by the decision to "redomicile" in the US.
"We do not anticipate the redomiciliation having any impact on our　day-to-day　business and operations, or affecting employee staffing levels or responsibilities at, or investment in, any of our global locations, including in Singapore," he wrote in the email, a copy which was provided to TODAY.
He also defended the move as　making "good business and strategic sense" in the current US business climate.　
Thursday's Oval Office announcement was tied to the release of congressional Republicans’ tax reform proposal, which would drastically reduce corporate rates and makes it easier for companies to deduct foreign taxes.
The EDB has awarded the company with tax breaks for having a major presence in Singapore, but the company warned in a recent regulatory filing that one of those benefits terminates in 2021, four years earlier than expected.
Responding to TODAY's query if the move will have an economic impact on the Republic, EDB’s Director for Electronics Pee Beng Kong said Broadcom's operations in Singapore will remain status-quo.
"Broadcom’s CEO and leadership team have always been based in the US. It has good business reasons to relocate its legal headquarters back to the US and we fully appreciate that," said Mr Pee.
"We understand that Broadcom’s operations in Singapore, which include manufacturing and R&D, will remain unchanged and will not be affected by this move."
Adding that Singapore remains the preferred Asian location for global companies, he said: "Singapore’s electronics industry is highly competitive. Recent investments include ams AG, a top global supplier of high performance optical sensor solutions, expanding its manufacturing operations here; Soitec, the world market leader for fully-depleted silicon-on-insulator (FD-SOI) wafers, opening its new production line; and semiconductor giant, Infineon Technologies establishing a ‘smart factory’ at its manufacturing plant in Singapore.
"These new projects reflect the continued confidence of global companies in Singapore as the preferred location for their activities in Asia."
Broadcom has 7,500 US employees across 24 states, the company said. 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. About 39 per cent of Broadcom’s employees worldwide are in Asia.
The company credits the GOP plan with making it easier to do business in the US. “America is once again the best place to lead a business with a global footprint,” Broadcom chief executive Hock Tan said.
However, Broadcom’s move to the US will take place regardless of whether the Republican plan passes, the company said.
The company did not respond to requests to explain its claim that the move would bring US$20 billion in annual revenue to the United States. Its most recently reported annual revenue was US$13.2 billion worldwide.
A year ago, the company entered a US$5.5 billion agreement to merge with US network provider Brocade Communications Systems, but that has been delayed while it is being scrutinised by the Committee on Foreign Investment in the United States. The high-level government committee, familiarly known as CFIUS, investigates proposed acquisitions of US companies by foreign buyers on national security and intellectual property grounds.
By becoming a US-based company, Broadcom can avoid the CFIUS process. Broadcom’s corporate headquarters will remain in San Jose, California.
“I want to thank you very much for choosing us,” said Mr Trump, who based much of his campaign on the promise of bringing jobs back to the US from overseas. The change in legal address won’t create directly create new jobs or plants in the US, but the company says it will boost its domestic research and engineering spending.
Broadcom makes semiconductor chips used for a variety of products, from cable set-top boxes to smartphones and other wireless devices.
It is rooted in one of the largest-ever tech industry acquisitions, when Singapore-based Avago Technologies bought Broadcom Corp. for US$37 billion last year. The deal made Broadcom Ltd. the parent company of both Broadcom Corp. and Avago Technologies. By joining forces, the rival chipmakers hoped to make a bigger dent in the rapidly growing market for wireless devices.
Nearly 20 per cent of its revenue in the most recent fiscal quarter came from sales to Apple and the contractors that manufacture Apple products, such as the Foxconn Technology Group.
About half of its revenue comes from China-based distributors and manufacturers, though the end products are used around the world.
“The proposed tax reform package would level the global playing field and allow us to compete worldwide from here in the United States,” Mr Tan said in a statement.
“Our move would domicile our US$20 billion annual revenue in the United States. From our base here, each year we will invest US$3 billion in research and engineering and US$6 billion in manufacturing, resulting in more high-paying tech jobs.” BLOOMBERG, WITH ADDITIONAL REPORTING BY LOUISA TANG