Qualcomm has in recent days approached Intel to explore a potential acquisition of the troubled chipmaker, a source familiar with the situation said on Friday, in what could be a transformational deal in the sector but faces many hurdles.

Intel Corp. shares climbed after the Wall Street Journal reported that Qualcomm Inc. approached the company about a takeover, a potential record-setting deal for the chip industry.Most Read from Bloom

Intel was once the largest chipmaker and a US technology powerhouse. Around 2018, this leadership began to crumble as TSMC steadily moved ahead.