According to Bloomberg, Broadcom has made an unsolicited offer to buy Qualcomm in a deal valued at $US130 billion (including $25 billion to cover net debt), which would be the largest acquisition in tech history.

It would almost double Dell's $US67 billion buyout of EMC back in 2015.

We’ve provided a very compelling offer and strong rationale for the combination

Qualcomm is the world's largest maker of mobile phone chips, so if Broadcom is successful, it would see it become the third largest chipmaker globally, trailing only Intel and Samsung.

It is certainly not a fait accompli though, with Qualcomm saying it would only "assess the proposal in order to pursue the course of action that is in the best interests of Qualcomm shareholders".

Bloomberg reports that Qualcomm is unhappy with the offer, saying it has been undervalued.

And it is expected that the board will recommend shareholders reject it, which would force Broadcom to pursue a proxy fight in order to proceed.

It seems Broadcom is looking to take advantage of Qualcomm's recent legal troubles, and its feud with Apple.

Jerome Dodson, who holds 8.2 million Qualcomm shares in his $4.9 billion Parnassus Endeavor Fund, said $70 a share for the company is “dirt cheap”.

He said $90 to $100 is closer to where it should be, noting that Qualcomm’s stock traded as high as $70 in the past year.

But Broadcom CEO Hock Tan isn't looking to negotiate.

“We’ve provided a very compelling offer and strong rationale for the combination,” Mr Tan said after the deal was made public.

“It makes sense and it’s very friendly I believe to all stakeholders, especially shareholders.”