Microchip Technology Inc. announced on Thursday it would buy Microsemi Corp., the biggest U.S. commercial supplier of military and aerospace semiconductor equipment, for about $8.35 billion.

The chip maker said it agreed to pay $68.78 a share for the company, while the cash and investments that Microsemi holds pushes the valuation up to $10.15 billion.

"Joining forces and combining our complementary product portfolios and end market exposure will offer our customers a richer set of solution options to enable innovative and competitive products for the markets they serve," Ganesh Moorthy, Microchip Tech's president and chiefoperating officer said in the announcement.

The deal comes amid a new wave of an alliance in the semiconductor industry that included Singapore-based chipmaker Broadcom Ltd. opening a $117 billion bid to acquire U.S. rival Qualcomm Inc.