A deal valuing NXP at more than $30 billion could be struck in the next two to three months, unnamed sources told the Journal.
Shares of NXP surged nearly 17 percent after the report, while Qualcomm shares gained 6 percent. The semiconductor industry is already on pace for its best quarter since 2009, up about 18 percent so far.
Qualcomm and NXP declined to comment on the report to CNBC, citing corporate policy.
— CNBC's Megan Hawkins and Gina Francolla contributed to this report.