(Reuters) - Analog chipmaker Analog Devices Inc has approached smaller rival Maxim Integrated Products Inc 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.
Maxim 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 agreed in June to buy Altera Corp for $16.7 billion, while Avago Technologies Ltd said in May that it would buy Broadcom Corp for $37 billion.
Analog Devices and Maxim were not immediately available for comment.
(Reporting By Arathy S Nair in Bengaluru; Editing by Sriraj Kalluvila)