Broadcom representatives are reportedly speaking with advisers regarding a potential deal.
Bloomberg, which was the first to report the news, said Broadcom has yet to make a final decision on the move. That would give Qualcomm a market value of $103.2 billion. Broadcom's plan to move its home address to the US from Singapore would free its $5.5 billion deal for USA network provider Brocade Communications Systems from a review by the Committee on Foreign Investment in the United States.
It is also possible that Broadcom wishes to purchase Qualcomm so that the legal battle with Apple draws to a close and because the chipset manufacturer could eventually become an industry arm of Apple's supplier.More news: Papa John's says anthem protests are hurting deal with NFL
Broadcom was created past year when Tan's Avago Technologies Ltd. bought Irvine-based chipmaker Broadcom Corp. for $37 billion and then adopted the Broadcom name for the combined company.
More: IPhone supplier Broadcom, seeking merger OK, unveils plan with Trump to return headquarters to U.S.
Its competitor Qualcomm finds itself in a weakened state. The Wall Street Journal quickly confirmed the news in its own report.
At issue are the licensing fees that Qualcomm charges for patents that cover the basics of how mobile phone systems work.More news: Multiple people dead following collision, explosion on Highway 400
Qualcomm is now trying to buy Netherlands-based NXP Semiconductors NV for about $40 billion. The deal is facing regulatory scrutiny in Europe and opposition from some shareholders including activist hedge fund firm Elliott Management Corp., which has argued the offer undervalues NXP.
With the introduction of the iPhone 7 and iPhone 7 Plus, Apple brought in Intel for its LTE chips and there have been rumors that the iPhone manufacturer might also bring in MediaTek to bring an end to the business relationship with Qualcomm.
Based on 2016 revenue, the enlarged company would be the world's third-largest chipmaker behind Intel and Samsung Electronics. The two companies are already among the top 10 providers of chips in an industry that's consolidating rapidly.More news: LTE is coming to the Surface Pro
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