Broadcom headquarters at UC Irvine’s University Research Park. Photo: Wikimedia.

Both the S&P 500 and the Dow Jones industrial average hit new record highs Monday after news broke that Broadcom proposed to acquire Qualcomm in a deal valued at $130 billion. If completed, the takeover would be the largest in the history of the technology sector.

According to a statement released by the company, Broadcom hopes to increase its share of the advanced semiconductor market and is confident that its proposal will “receive all necessary [regulatory] approvals in a timely manner.”

Some Wall Street analysts have mused that the deal comes at an opportune time for Qualcomm, which has faltered in recent years with lackluster earnings and revenue growth. CNBC, however, reported that Qualcomm rebuffed Broadcom’s initial offer, which was made in private. Whether Qualcomm shareholders will push the company to accept the deal remains to be seen.

The combined company could prove a formidable challenger to Intel and Samsung, two of the largest existing chipmakers.

Qualcomm has stated that it will not comment until its board of directors has fully assessed the proposition.