Japanese electronic parts maker TDK is considering making an offer that U.S.-based MEMS provider InvenSense may not be able to refuse.

People familiar with the deal told Reuters that TDK has offered $12 per share to acquire the California-based motion sensor provider, whose client list includes Apple and Samsung Electronics. Sources, however, noted that negotiations are still ongoing and the terms could still change before a deal is reached—hopefully by the end of December.

Acquiring InvenSense will be a boon to TDK, which seeks to boost its sensor offerings. InvenSense's line-up includes gyroscopes that help smartphones calculate motion.

News of a possible acquisition sent InvenSense's soaring 27.8% during the afternoon trading last Friday. This, in turn, gave the company a market capitalisation of about $1 billion.

If the deal pushes through, InvenSense will become the latest company to be swept up by the widespread industry consolidation, as chipmakers attempt to lead in emerging markets like cloud computing and the Internet of Things. In 2015, Intel bolstered its stake in the IoT and data centre markets with the acquisition of Altera. Recently, Qualcomm struck a deal with NXP Semiconductors for $38 billion, while Broadcom merged with Avago for $37 billion.