Google has signed a deal to acquire chip maker Microsystems.
The company announced the news on Thursday, a day after it raised $25 million in funding.
“Today we are pleased to announce that we have entered into a definitive agreement to acquire Microsystem, one of the largest semiconductor companies in the world, for a cash consideration of approximately $20 billion,” Google chairman Eric Schmidt said in a statement.
“We expect the transaction to be completed in the fourth quarter of 2017.”
The deal, if completed, will bring Google’s chip division under Microsystem’s umbrella and put the company in a position to make a number of key hardware products, including smartphones, smart TVs and servers.
It also comes as the company looks to continue its expansion into the cloud computing market, where it has focused heavily in recent years.
The acquisition of Microsystem would mark a major shift in Google’s business, which has become increasingly focused on smartphones, tablets and other mobile devices.
It’s expected that Google will use Microsystem as a base to build its own software platform, a move that could allow the company to focus on mobile apps, search, and other applications.