Chip giant Qualcomm will approach rival Intel with a takeover proposal.According to what the Wall Street Journal reported, citing people familiar with the matter.

If the acquisition is confirmed, it would come at a time when Intel is struggling. The company, once the world's largest chipmaker, has seen its shares fall by about 60% this year. Intel's market cap is now around $87 billion. The announcement comes just days after Intel said it was suspending a significant portion of its investments in Europe.

According to the Wall Street Journal, the agreement is by no means certain, and a deal of this magnitude would certainly attract scrutiny from the US Competition and Markets Authority. However, The acquisition could be seen as an opportunity to boost the US's competitive advantage in chips..

Intel, which had Market cap over $290 billion at peakrose 3.31% on Friday to $21.84 per share. Qualcomm ended the day down 2.87% to $168.92 per share.

Qualcomm is a major supplier of chips for smartphones. It is one of the most important suppliers of Apple iPhone devices, Among a series of other devices. The company's market cap is currently around $185 billion, more than double Intel's current value.