NXP Semiconductors explores sale to Qualcomm

Many chip company acquisitions and deals have taken place throughout this year, and the Qualcomm - NXP Semiconductor one would stand out amongst them.

NXP Semiconductors NV (NASDAQ:NXPI) reported its last earnings on Oct 26 AMC (BMO = before market open, AMC= after market close).

As the WSJ points out, Qualcomm with NXP's bounty in its grasp would become the top vehicle chips supplier in existence, and that's no small thing considering the increased demand in the auto industry.

NXP Semiconductors N.V. (NXPI) has an average broker rating of 1.19, which is interpreted as a Strong Buy, as rated by 16 equity analysts.

However, the Journal also said it was possible there would no deal and Qualcomm was exploring other options. Qualcomm's market value rose 6 percent to $99 billion. Previously, SoftBank had acquired ARM in a deal worth $32 billion.

The Journal, citing sources, said an agreement between the companies may be struck in the next two or three months and would likely rank as the largest deal in the ever consolidating semiconductor industry with a value of over $30 billion. The best of the lot will be the chips used in cars as NXP is the leader in auto related chips. American Century Companies Inc. now owns 2,220,079 shares of the semiconductor provider's stock worth $173,921,000 after buying an additional 246,013 shares during the period.

Apart from automobiles, NXP also builds chips related to smartphones, personal computers, and identification and transit cards.

The semiconductor space has seen huge gains this year, driven by unprecedented demand for chips used in everything from mobile phones, to virtual reality systems, to autonomous driving technology.

If you read the news even a little bit, you'll know that the automotive industry's use of advanced chips shows zero sign of abating but rather its growth is near guaranteed as long as people continue to drive. It has more than 33,000 employees while NXP has more than 45,000 in more than 35 countries.

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