Qualcomm and NXP on 27th, Oct. announced that they had signed an agreement, under which Qualcomm will acquire NXP. The deal is around $47 billion. Qualcomm intends to pay $110 for every NXP share, which represents around 11.5% premium compared to the stock price on the day before. It expects to close the deal before the end of 2017. This deal is the biggest semiconductor transaction ever.

After combined, the two firms are expected to have annual volume over 30 billion USD. Qualcomm focus on smart phone chips, and becomes the leader in this area in only few years. However, the low growth rate of smart phone market brings great challenges to Qualcomm. By acquiring NXP, Qualcomm will enrich products series greatly, and will cover industries like automobile, safety, RF and IoT, thus can increase gross profit greatly.