The biggest ever takeover of a chipmaker could be brewing.
A Qualcomm representative declined to comment.
No final decisions have been made and there is no guarantee a deal will go ahead. This time the San Diego chipmaker is suing Apple for allegedly sharing proprietary Qualcomm technologies with its market rival, Intel. Broadcom stock, meanwhile, is trading up almost 6.5 percent.
With its profits plummeted more than 90 percent in the latest earnings call, Qualcomm could be fighting a losing legal battle with Apple, giving Broadcom the flawless opportunity to acquire the chipmaker in what could be the largest chip business acquisition ever.More news: Constitution Bench of SC commences hearing on Delhi-Centre governance row
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Broadcom Chief Executive Officer Hock Tan is a voracious acquirer, and he's played a key role in a wave of consolidation engulfing the $300 billion semiconductor industry over the last three years.
Qualcomm reported a plunge in net earnings for the fourth quarter of its fiscal year, to $168 million, or 11 cents per diluted share, compared to $1.6 billion, or $1.07 per diluted share, in the same period in 2016. Tan has said he wants more deals, a strategy that could be limited by opposition from USA regulators. Broadcom now lists Singapore and San Jose as co-headquarters.
Qualcomm and Apple have been embroiled in a dispute over royalties that has landed the two corporations in court.
The deliberations come as Qualcomm, based in San Diego, California, tries to close its $47-billion purchase of NXP Semiconductors NV.
Qualcomm faces a multinational legal battle with Apple Inc over Qualcomm's licensing terms to Apple. It has faced regulatory scrutiny in Europe, and some shareholders such as activist hedge fund Elliott Management Corp. have said the deal undervalues NXP, a large maker of automotive and other chips. Broadcom is also a major supplier to numerous same companies for Wi-Fi chips.