By Dana Mattioli and Gillian Tan 

NXP Semiconductors NV is in advanced talks to combine with Freescale Semiconductor Ltd., according to people familiar with the matter.

The structure of the deal couldn't be learned, but a tie-up between the companies could be announced as soon as this coming week, the people said.

The deal would create a semiconductor giant with a combined market value of more than $32 billion.

NXP, based in Eindhoven in the Netherlands, makes chips that are used for electronics and in the automobile and other sectors. Freescale is based in Austin, Texas, and is a former division of Motorola. In 2006, private-equity firms Blackstone Group LP, Carlyle Group LP, Permira and TPG agreed to pay $17.6 billion to take Freescale private. They took the company public again in 2011.

Private-equity firms AlpInvest Partners, Apax Partners, Bain Capital LLC, KKR Co. and Silver Lake bought NXP from Philips Electronics NV for around $10 billion, before taking the company public in 2010.

Write to Dana Mattioli at dana.mattioli@wsj.com and Gillian Tan at gillian.tan@wsj.com

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