Microchip Technology Inc. said it was buying semiconductor rival Microsemi Corporation for $8.3 billion -- in a deal bringing together two firms in chips for data centers, smart appliances and aerospace and defense applications. The boards of both firms approved the deal, worth more than $10 billion including Microsemi's cash and assets. The transaction is subject to California-based Microsemi shareholder approval and is expected to close in the first half of this year.

"Microchip and Microsemi have a strong tradition of delivering innovative solutions to demanding customers and markets," said Ganesh Moorthy, president of Arizona-based Microchip. The combined firm could have more than $5 billion in annual revenues and a strong presence in chips and controllers for medical devices, smart home appliances and for military-grade and aerospace hardware. It comes amid a bruising battle between two other chipmakers, as Singapore-based Broadcom seeks to buy U.S.-based Qualcomm in a hostile bid worth an estimated $117 billion.