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Japanese semiconductor firm Renesas Electronics Corp., which specializes in making computer chips for self-driving cars, this weekend acknowledged reports that it’s considering acquiring the U.S. firm Integrated Device Technology Inc. in a deal that could be worth up to $6 billion.

The proposed deal, first reported by the Nikkei business news service Saturday, would be one of the largest-ever acquisitions by a Japanese chipmaker if it goes through. Updated: Renesas confirmed the acquisition for $6.7 billion early Tuesday, Sept. 11, in Tokyo, according to Reuters.

California-based IDT, which builds radio frequency chips used for applications such as 4G and 5G networks, data centers and autonomous cars, saw its share price jump 16 percent on the news, pushing its valuation to $5.7 billion.

In a regulatory filing, Renesas, which is second only to Dutch firm NXP Semiconductors N.V. in the automotive chip sector, confirmed it was considering a move to acquire IDT. It said that “nothing has been decided” but that it would be prompt in disclosing its plans once a decision has been made. It also said it was considering possible financing options in case it does make an acquisition, should finance be necessary.

IDT did not comment on the report. If an acquisition takes place, it would help Renesas move into new growth areas, most notably by enhancing its ability to develop chips for data communications, which are critical for self-driving vehicles, Nikkei said.

The report suggested that consolidation in the chipmaking industry is not yet done, despite the recent failure of Qualcomm Inc.’s to acquire NXP and Broadcom Inc.’s own bid to acquire Qualcomm, which was blocked by U.S. President Donald Trump earlier this year on security grounds.

Renesas’ bid for IDT could still be thwarted for similar reasons. Analyst Antony Stoss of Craig-Hallum told Reuters that the American company builds important technology for 5G base stations that could also be considered a matter of national security. He also said he thinks Renesas would need to up its offer to $7 billion in order for it to be accepted.

Renesas is no stranger to acquisitions. Its $3.2 billion purchase of American chipmaker Intersil Corp. in February 2017 was one of several notable deals in the semiconductor industry over the last couple of years. The company was also linked earlier this year to a $20 billion takeover of another American chipmaker, Maxim Integrated Products Inc., though that deal failed to materialize.

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