On Tuesday, shares of Skyworks Solutions (SWKS.US) rose sharply, gaining over 13% to $85.69 at the time of writing. The surge follows reports that the company is in talks to acquire rival Qorvo (QRVO.US), aiming to consolidate their smartphone RF chip businesses. Qorvo, with a current market cap of approximately $8.4 billion, saw its shares jump over 11.8% to $103 in early trading on the news.

The potential acquisition has drawn significant attention as both companies recently warned of weakening orders from their largest customer, widely believed to be Apple (AAPL.US), while facing increasing competition eroding their market share. Amid cooling demand from Apple and heightened competition, consolidation is seen as a potential strategy to enhance bargaining power and scale advantages.