Qualcomm is said to be in talks to acquire NXP Semiconductors in a deal valued at over $30 billion. According to a new report from the Wall Street Journal, the deal could be finalized in the next two or three months, marking the latest in a string of mergers in the semiconductor industry.

NXP was ranked No. 7 in terms of revenue among global semiconductor companies in 2015. The company is known for co-creating the near-field communication (NFC) technology behind wireless payment services like Apple Pay and Android Pay. The company is a leading chip supplier for Apple Apple and Samsung smartphones, and a major supplier of chips for both the auto and IoT industries, especially after its $12 billion acquisition of Freescale Semiconductor late last year.

A deal would consolidate the combined company's position as the third largest semiconductor company by revenue, behind Intel and Samsung Electronics.

Qualcomm is a major player in the smartphone industry with its popular Snapdragon series of SoCs and wireless modems. But the company's revenues have been hit by slowing smartphone sales and contracting demand for high end devices, with budget devices from Chinese companies putting profit margins under pressure. The deal should accelerate its diversification to other areas of growth.

The Wall Street Journal notes that the acquisition is not yet final and could fall apart.

The chip industry has seen an influx in mergers and acquisitions --- up to $145 billion in M&A deals last year according to Dealogic. Some of them include Avago Technologies' $37 billion purchase of Broadcom, Intel's $17 billion acquisition of Altera, and WD's $16 billion acquisition of SanDisk.