(story corrects paragraph 3 of Oct. 14 story to say Analog Devices , not Maxim, had a market value of about $17.58 billion)
(Reuters) - Analog chipmaker Analog Devices Inc (O:ADI) has approached smaller rival Maxim Integrated Products Inc (O:MXIM) on a possible combination, Bloomberg reported, citing sources.
Maxim was working with a bank on a strategic review when it was approached by Analog Devices, Bloomberg reported on Wednesday, citing one of the people.
Analog Devices had a market value of about $17.58 billion while Maxim had a market value of $9.88 billion as of Tuesday close.
Maxim's shares closed up 10.4 percent at $38.33. Analog's stock closed up 8.8 percent at $60.99 on Wednesday.
A likely deal would be the latest in the global semiconductor industry this year as companies look to cut costs and expand their offerings. Intel Corp (O:INTC) agreed in June to buy Altera Corp (O:ALTR) for $16.7 billion, while Avago Technologies Ltd said in May that it would buy Broadcom Corp (O:BRCM) for $37 billion.
Analog Devices and Maxim were not immediately available for comment.