Intel Corp. is considering a bid for Broadcom Ltd. as part of a range of acquisition alternatives in reaction to the Singapore-based chipmaker’s bid for U.S. rival Qualcomm Inc., the Wall Street Journal reported, citing people familiar with the matter.

Intel (INTC.O), the world’s second-largest semiconductor maker, is keeping a close eye on the US$117 billion takeover battle and is eager for Broadcom (AVGO.O) to fail, because the combined company would pose a serious competitive threat, the Journal reported. If Broadcom seems set to prevail, Intel could step in with its own offer, the newspaper reported. Intel has been considering such a move since late last year and is working with advisers, according to the Journal.

Broadcom shares jumped as much as 8.3 per cent to US$275 in extended trading in New York. The report cautioned it’s far from guaranteed that Intel would make an offer and that it could pursue smaller acquisitions instead.

Broadcom currently has a market value of about US$104 billion. Its offer for Qualcomm (QCOM.O) has been met with resistance, not only from Qualcomm executives but also from the U.S. government, which has initiated a review on national security concerns. This week, the U.S. Treasury Department ordered a 30-day postponement to Qualcomm’s shareholder meeting, which was supposed to hold a vote on a slate of Broadcom board nominees. Early indications showed that Qualcomm was on course to lose majority control of its board to Broadcom, according to information obtained by Bloomberg.

While a new vote has been scheduled for April 5, a review by the Committee on Foreign Investment in the U.S. is likely to take longer. Broadcom is pressing ahead, vowing to cooperate with the U.S. review and pledging to boost investment in U.S. wireless technology to offset concerns that it would slash spending and allow foreign companies to steal the lead in the next generation of mobile technology.