Qualcomm would do well out of it because it would become a bigger supplier to the automotive industry which is fast being seen as the place to make big dosh.

According to the Wall Street Journal a deal Qualcomm could be struck in the next two to three months.

NXP closed a nearly $12 billion deal to buy Freescale Semiconductor last December and made itself the world's top maker of automotive electronics and doubling the percentage of its auto-related revenue to 40 percent.

The deal is not a slam dunk for Qualcomm, NXP could be being wooed by Broadcom and Texas Instruments. Qualcomm has been dealing with slowing smartphone sales and stiff competition from Chinese and Taiwanese rivals so heading into automotive is a sharp move.

Qualcomm has so far ignored the consolidation sweeping the chip industry. So far the largest deal was Avago writing a cheque for Broadcom for $37 billion last year. Qualcomm gets the bulk of its revenue from chip sales but most of its profit comes from wireless patents it licenses to the mobile industry.