Last week, I wrote about how Qualcomm (QCOM – Free Report) softened its rejection of Broadcom’s (AVGO – Free Report) bid by meeting with its key people: Qualcomm Meets Broadcom After Rejecting Its Revised Offer. But the company reportedly hasn’t said much since then, either to Broadcom representatives or to the public. Its response has instead been to raise the offer for NXP Semiconductor (NXPI – Free Report) from $110 to $127.50 per share in cash.

Raising the price irked Broadcom, which put out a statement saying, “Qualcomm’s board acted against the best interests of its stockholders by unilaterally transferring excessive value to NXP’s activist stockholders.” It has also said that it will reduce the cash portion of its own bid for Qualcomm by $3 if it buys NXP at the new price. It’s new offer for the company is $117 billion, reports Reuters.

Qualcomm Needs to Buy NXP

Qualcomm may be able to close the deal at the new price, as it has now has agreements from nine large shareholders, including Eliott Managementand Soroban Capital Partners that had been pushing for a higher price. These investors together control a 28% stake. If 70% of the shares are tendered, Qualcomm can buy out the entire company in a two-step process as agreed with its board.

If NXP shareholders don’t approve the deal, the company will pay $1.3 billion to Qualcomm as cancellation fee and if Qualcomm can’t find the resources or acquire the necessary government approval, it will have to pay NXP $2 billion (China’s MOFCOM is the only regulator left to approve the deal). At any rate, NXP share prices remain close to (slightly below) the revised offer price, so most investors seem happy with it.

The financial considerations aside, NXP solves many problems for the leading mobile chip maker. The company is the leading supplier of automotive chips and has also built capabilities in IoT. Qualcomm on the other hand, leads in mobile chip technology and is attempting to make inroads into Intel’s computing territory. While the mobile phone market is slowing down, automotive and IoT applications, where Intel is building capabilities, represent growth opportunities for the company.