Finance: Broadcom is reportedly exploring a massive acquisition of $80 billion Qualcomm (AVGO, QCOM)

Semiconductor giant Broadcom is exploring a possible acquisition of $80 billion Qualcomm, according to a Bloomberg News report.

Semiconductor giant Broadcom is exploring a possible acquisition of $80 billion Qualcomm, according to a Bloomberg News report citing people familiar with the matter. It would be the biggest-ever purchase of a semiconductor manufacturer.

Shares of Qualcomm surged roughly 15% on the news, while Broadcom's stock climbed more than 3%.

According to the Bloomberg report, Broadcom is in talks with financial advisers. At present time, no final decisions have been made.

Broadcom, which has a market value of $110 billion, just announced on Thursday that it's moving its headquarters to the US from Singapore.

This comes at a time when Qualcomm itself is trying to complete a $47 billion purchase of NXP Semiconductors. The M&A activity in the semiconductor space shows just how much consolidation is taking place.

It has been a quieter year for M&A activity so far in 2017, with US inbound M&A volume for the first nine months at $199.3 billion, down 39% from last year, according to Dealogic.

Tech acquisitions in particular have dropped sharply. The sector's M&A volume in the Americas reached $117.9 billion in the first nine months of 2017, a 58% decrease over the same period in 2016, Dealogic data show.

However, John Waldron, cohead of the investment banking division at Goldman Sachs, recently told Business Insider he expected big ticket M&A to pick up.

"If what we think is going to happen happens, which is more endgame consolidation, that would be really good for this business," Waldron said, speaking about his firm's debt operation.

Semiconductor giant Broadcom is exploring a possible acquisition of $80 billion Qualcomm, according to a Bloomberg News report. Read Full Story