It's not a done deal, however.
It is said that if Broadcom merges with Qualcomm, combination of Broadcom with Qualcomm will make Broadcom third largest Chip makers in the world.
According to sources Qualcomm is not aware of the details of Broadcom's bid and the company has yet to make any comment.
Broadcom president and CEO Hock Tan said the bid was "compelling for stockholders and stakeholders in both companies".
"We are well advised and know what our options are, and we have not eliminated any of those options", said Tan, who has pulled off a string of deals over the past decade.
Broadcom is up 2.31% to $279.95 and Qualcomm is up 4.57% to $64.63. Broadcom already provides designs for Wi-Fi and Bluetooth chips, and by bringing in Qualcomm it will be able to encompass LTE and 5G capabilities.
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Broadcom's own $5.5 billion (£4.2 billion) agreement to merge with US network provider Brocade Communications Systems previous year has been delayed while it is scrutinised by the US Committee on Foreign Investment (CFI), which investigates proposed acquisitions of US companies by foreign buyers on national security and intellectual property grounds.
Broadcom rose up by 5.5 percent on Friday for a estimated market value of $112 billion. We think NXP would also fit in reasonably well under the Broadcom umbrella, but we're surprised that Qualcomm's cash hoard isn't a requirement to fund Broadcom's bid.
Broadcom's proposal was unanimously approved by its Board of Directors.
Apple, as a key customer, could play a key role.
Industry analysts believe that if Apple does not challenge the deal, it's one hurdle that Broadcom will have cleared.
Tan also has a history of cutting costs at acquired companies, and Charter Equity analyst Ed Snyder predicted Tan would cut away waste at Qualcomm.
Broadcom plans to move its headquarters exclusively to the United States, which would allow it to avoid review by the Committee on Foreign Investment in the United States, which reviews foreign ownership of USA assets.