Broadcom unveiled on Monday a $105 billion takeover bid for Qualcomm, setting up a potential merger battle between two of the world’s biggest chip makers.
On one side is Qualcomm, a longtime leader in the semiconductor industry that has fallen on hard times, facing a protracted legal battle with Apple and an antitrust investigation in Europe. On the other side is Broadcom, which has grown enormously over the past eight years thanks to voracious deal-making.
Putting the two together would yield an undisputed giant in the world of smartphone technology — a company whose chips are used in both the latest iPhones and the newest Android models.
That it is Broadcom bidding for Qualcomm reflects each company’s changing fortunes over the past decade.
Qualcomm, an early pioneer in cellphone chip technology, has seen its stock price fall around 20 percent in the past 12 months, before the Broadcom bid was reported. It has also been embroiled in a fight with Apple, suing the iPhone maker last week over accusations of software violation agreements. Apple itself sued Qualcomm this summer over what the smartphone maker said was an “illegal business model.”