The deal is believed to be more than 8 billion euros ($10.26 billion), according to the report.

As reported last month, three of the biggest private equity firms are in the final stage of bidding for the semiconductor division of Philips Electronics, according to the Wall Street Journal.

According to sources, the bidders were Kohlberg Kravis Roberts & Co. teamed up with Silver Lake Partners; Permira Advisors of London linked with Texas Pacific Group; and Blackstone Group and Bain Capital Inc. together with Apax Partners Worldwide LLC and Francisco Partners Management LLC.

As reported late last year, Royal Philips Electronics of the Netherlands stunned the industry by announcing plans to spin-off its chip unit, Philips Semiconductors.

Last month, Royal Philips Electronics reiterated its intention to float or sell off a majority stake in its semiconductors division by the end of this year.

Recently, Philips' semiconductor unit reported sales of 1,221 million euros ($1.53 billion) in the second quarter, up 5 percent sequentially and up 12 percent over the like period a year ago.

Operational profits quadrupled to 120 million euros ($152 million), according to the Dutch-based company. For the third quarter, the company's chip sales are projected to grow by 5-to-9 percent, according to reports.

Meanwhile, once again, KKR and Silver Lake have made big headlines. Seeking to reposition itself as a pure-play measurement company, Agilent Technologies Corp. last year sold its troubled semiconductor business to equity fund companies KKR and Silver Lake for $2.66 billion.

Rechristened Avago Technologies Pte., Agilent Technologies' former semiconductor products group became a standalone company late last year.

Then, in January, Agilent gave further life to its proposed semiconductor test equipment spin-off, bestowing the name "Verigy" on the entity. The ATE spin-off recently filed an initial public offering.