Intel plans to buy Intel Corporation for $13.5bn in stock, according to a report from Bloomberg.
The deal is expected to close next month, the report said.
The report did not provide a price.
The announcement comes a week after Intel announced plans to spend $5bn to buy chipmaker AMD.
Intel has been in the chip business for almost 60 years and it was the first major tech company to go public in 2010.
It had a market value of $1.8tn as of December 30.