Qualcomm and Broadcom declined comment on the reports from Bloomberg and the Wall Street Journal, but Broadcom Chief Executive Hock Tan has a history of aggressively acquiring companies to bolster his company's growth.
No final decisions have been made and there is no guarantee a deal will go ahead.
Stock of San Diego-based Qualcomm jumped 12.7 percent to close at $61.81. Broadcom fell slightly to trade up about 1 per cent, for a market valuation of $107-billion.
Shares of Qualcomm (Nasdaq: QCOM) were up about 14% to a $93 billion market cap following the announcement; Broadcom (Nasdaq: AVGO) was up about 5% to a $110 billion market cap. Broadcom itself was reborn in 2016 when Avago Technologies Ltd. acquired Broadcom Corp. for $37 billion.
Most recently, Qualcomm filed yet another lawsuit against Apple, with the chipmaker accusing the iPhone maker of breaching a software license contract.
The $70-per-share price values Qualcomm at $103.2 billion. As a result, there is talk that the 2018 iPhone and iPad models will feature modem chips made by Intel and MediaTek. Broadcom announced yesterday its intention to move corporate headquarters back to the U.S.to take advantage of the lower tax rates expected.
Qualcomm and Apple have been embroiled in a dispute over royalties that has landed the two corporations in court.
Qualcomm, based in San Diego, is also confronting headwinds in closing its $47 billion purchase of NXP Semiconductors.
Qualcomm faces a multinational legal battle with Apple Inc over Qualcomm's licensing terms to Apple. The deal is facing regulatory examination in Europe and opposition from some shareholders including activist hedge fund firm Elliott Management Corp., which has argued the offer undervalues NXP. Broadcom is also a major supplier to numerous same companies for Wi-Fi chips.