Qualcomm in talks to buy NXP Semiconductors for $30bn

30 Sep 2016

Buying NXP will give Qualcomm an edge in mobile wallet technology. Image: Dragon Images

Comms chip giant Qualcomm is reportedly in talks to buy NXP Semiconductors, signalling further consolidation of the chip industry.

Qualcomm, the primary maker of chips for smartphones, is rumoured to be eyeing up NXP, a leader in the growing near field communication (NFC) chip area – a vital tool for turning mobile phones into digital wallets.

In one fell swoop, Qualcomm has the potential to be the leader in the 21st-century mobile commerce chip industry.

NXP is valued at around $28bn and Qualcomm is prepared to offer $30bn for the company.

The chips are on the table for NXP

Citing people familiar with the matter, The Wall Street Journal reported that the companies are likely to declare an agreement in the next two to three months.

The deal would add considerably to an ongoing trend of consolidation in the semiconductor industry.

Last year, Avago Technologies bought Broadcom for $37bn, while Intel paid nearly $17bn for Altera.

In recent weeks, Intel acquired Irish machine learning chip company Movidius for a sum believed to be in the region of $300m.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years