Nathan Bomey, and Jon Swartz

USA TODAY

With plans to insert itself in the driver's seat for a slice of the self-driving car market, Qualcomm said Thursday it has agreed to acquire NXP Semiconductors for about $38 billion.

Qualcomm said it would pay $110 per share for the Dutch company, which commands 14% of global automotive semiconductor sales. It expects the deal to close by the end of 2017.

Shares of Qualcomm (QCOM) rose 2.8% to $70.09. NXP shares (NXPI) ended up 0.4% to $99.08.

The deal, which gives the telecommunications giant a greater foothold in the burgeoning market for technology that will power self-driving cars, represents a growth space compared to the saturated market for smart phones and other mobile devices. NXP also has a desirable position in the market for technology powering the so-called Internet of Things and security products.

“Qualcomm has played a critical role in driving the evolution of the mobile industry," Qualcomm CEO Steve Mollenkopf said in a statement. "The NXP acquisition accelerates our strategy to extend our leading mobile technology into robust new opportunities," he said.

But the deal also places Qualcomm in a crowded dog fight, with Infineon Technologies AG, Renesas Electronics, STMicroelectronics NV and Texas Instruments.

The mega-acquisition is the latest in a series of blockbuster deals for the semiconductor business, accelerating the trend of consolidation.

In July, Softbank said it would buy chip designer ARM Holdings for $32 billion. Last year, Avago agreed to acquire Broadcom for $37 billion, Intel acquired chip maker Altera for $16.7 billion, and NXP agreed to take over Freescale Semiconductor for $11.8 billion.

Qualcomm said it expects to shed $500 million in costs annually within two years of the deal's closure, though it did not specify where the cuts would occur. The combined company would boast more than $30 billion in annual revenue.

When including the assumption of debt, the deal has enterprise value of about $47 billion.

Follow USA TODAY reporter Nathan Bomey @NathanBomey and San Francisco Bureau Chief Jon Swartz @jswartz on Twitter.