Considered the biggest chip deal in history, Qualcomm is buying Netherland's NXP Semiconductors.

Announcing the blockbuster deal in a joint press release, the merger of the two giant chipmakers are underway. The deal covers an all-cash deal with the valuation of NXP at $110 per share, debt inclusive, which bring the total value to a high $47 billion. The price per share is an 11.5 percent premium from NXP's stock closing price of $98.66 last Wednesday, Oct. 26, according to Forbes.

The merger is expected to gain an annual revenue of $30 billion reaching a market growth projected at $138 billion by 2020. Goldman Sachs and Evercore, financial advisers to Qualcomm project an estimated annualized cost-saving of $500 million within two years upon deal closing, Business Insider reported.

The Qualcomm-NXP merger was approved by both company's boards of directors and is expected to culminate by year-end 2017. Qualcomm will fund the acquisition both with cash and debt and will employ offshore cash flows enabling tax efficiency and reduce leverage.

The schedule in acquiring all NXP shares is not dependent on any financing conditions, this gives Qualcomm the leverage to work out its debt strategy for the purchase. More details will be announced once Qualcomm and NXP file their respective initial SEC Papers pertaining to the merger.

The Qualcomm-NXP merger aims to form a behemoth in the semiconductor industry that will provide chips for automotive infotainment systems and internet-of-things devices while still supplying chips for the mobile industry.

The acquisition is an addition to the multi-billion dollar deals in the tech industry during the past months, including Avago's acquisition of Broadcom, Intel's takeover of Altera, Dell's takeover of EMC. This also includes NXP's own takeover of Freescale Semiconductor.

Qualcomm shares rose to 36 percent this year, increased another 4 percent closing at $71.11 after the announcement. NXP inched up 2 percent increasing its share price to 17 percent this year.