The companies expect to finalise the deal before the end of 2017, although that will be subject to "regulatory approvals in various jurisdictions", the companies said.
The merged business is expected to generate more than $30bn in annual revenues and have leading positions in several markets.
Steve Mollenkopf, chief executive of Qualcomm, said: "The NXP acquisition accelerates our strategy to extend our leading mobile technology into robust new opportunities, where we will be well positioned to lead by delivering integrated semiconductor solutions at scale. By joining Qualcomm’s leading SoC (system on a chip) capabilities and technology roadmap with NXP’s leading industry sales channels and positions in automotive, security and IoT (internet of things), we will be even better positioned to empower customers and consumers to realise all the benefits of the intelligently connected world."
The merger between Qualcomm and NXP will "bring together all technologies required" to deliver "secure connections for the smarter world", said Rick Clemmer, NXP chief executive.
"Jointly we will be able to provide more complete solutions which will allow us to further enhance our leadership positions, and expand the already strong partnerships with our broad customer base, especially in automotive, consumer and industrial IoT and device level security," Clemmer said.
"United in a common strategy, the complementary nature of our technologies and the scale of our portfolios will give us the ability to drive an accelerated level of innovation and value for the whole ecosystem. Such a strong fit will bring opportunities for our employees and customers, as well as provide immediate attractive value for our shareholders, in creating the semiconductor industry powerhouse," he said.
