>> One massive chip company potentially swallowing another in what could be the biggest semiconductor deal ever. I'm Stephen Nellis with Reuters News here in San Francisco. Sources tell us that Broadcom, a $110 billion market capitalization company is interested in buying Qualcomm. The news has pushed Qualcomm shares up about 20%, making its market capitalization about $90 billion.
You might not have heard of either of these two companies, but you probably have them in your pocket. Broadcom makes things like the WiFi chips and the GPS chips that go into phones. And Qualcomm is well known as the company that makes the modem chips that help those phones connect to wireless data networks.
So if this deal were to go through, it would be an unprecedented amount of stuff in a single phone. It would spell big trouble for companies like Intel, that are trying to break in to that mobile communications business. Now, this is a complicated deal because Broadcom is very big, a $100 billion.
And Qualcomm is very big, but they're both in the midst of trying to buy other companies. Broadcom is trying to buy a company called Brocade. And Qualcomm is trying to buy a company called NXP. Now, Broadcom has actually just moved its headquarters back to the US to try to ease that deal.
And if it were to buy Qualcomm, we don't know what would happen to NXP. Which by the way would have been the second biggest semiconductor deal ever aside from this one. So there's a lot of action going on in the chip world as we speak.