One of the largest ever deal in the chip industry is set to take place, with Avago agreeing terms to buy rival Broadcom for $37bn - $17bn in cash, and $20bn in Avago shares.

Broadcom is a Californian-based form which provides semiconductors for a wide variety of electrical products, and connectivity chips for smartphone producers like Samsung and Apple.

According to RTE, Analyst Romit Shah said the deal would allow Avago to provide end-to-end components into the networking and infrastructure markets.

The combined company, based in Singapore, would have an annual revenue of $15bn and an enterprise value of $77bn, according to a press statement.

The deal is expected to be complete by this time next year.