Broadcom is considering an acquisition plan, which it could put into motion as soon as this weekend, the Wall Street Journal reported, citing an unnamed source it said was familiar with the matter.
The report said the deal could be worth up to $90 billion, possibly the biggest ever in the technology sector.
The news came a day after Broadcom chief executive Hock Tan appeared at the White House with President Donald Trump to announce plans to move the tech company back to the United States from Singapore.
Shares in Qualcomm were up more than 14 percent to $62.58 as the close of the official trading day neared on the Nasdaq exchange.
Broadcom shares also gained ground on the Nasdaq, rising more than four percent to $271.20, in a possible sign that the market saw merit in the acquisition.
The potential tie-up signaled consolidation in the sector which produces chips for smartphones and an array of other “internet of things” connected devices.
Qulacomm has announced a $47 billion acquisition of Dutch rival NXP, a deal which is the subject of an EU antitrust inquiry.
Broadcom is seeking to buy US rival Brocade Communications, a deal being reviewed by Washington.
In the US, Qualcomm is locked in contentious patent battles with fellow tech giant Apple, which filed a lawsuit in January accusing the chip maker of abusing its market power to demand unfair royalties.
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