No deal is assured and a transaction isn't imminent, the report said. Fairchild, ON Semiconductor and Infineon did not immediately respond to CNBC's requests for comment.
The news comes a day after reports surfaced that fellow chipmaker Micron and hard-disk drive maker Western Digital were in talks with memory storage provider SanDisk about a possible acquisition.
As of midday trading on Wednesday, Semiconductor stocks were the worst-performing batch out of the S&P 500 Information Technology industry group year to date.
The group is down about 9 percent on the year, but it has gained more than 12 percent over the last 12 months, according to FactSet.
Fairchild, which is not listed in the S&P semiconductor group, is down about 3 percent year to date.
Fairchild is scheduled to report third-quarter financial results before the bell on Thursday.