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Analog Devices is said to be near a deal to acquire a Silicon Valley company for $17 billion

The Norwood company Analog Devices Inc. is close to an all-stock agreement to acquire Maxim Integrated Products Inc., a Silicon Valley company, according to people familiar with the matter.

The semiconductor companies are talking about a deal that values San Jose, Calif.-based Maxim at more than its current market capitalization of roughly $17 billion. Analog has a market value of $46 billion and maintains a large office in the San Jose area.

The deal could be announced as early as Monday, though discussions could still fall apart, said the people, asking not to be named discussing private negotiations.

The Wall Street Journal first reported the negotiations.

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Analog Devices is currently less than half the size of the market leader, Texas Instruments Inc., by revenue. While acquiring Maxim wouldn’t allow it to close the gap totally, it would broaden the range of products in the Analog portfolio, something that Texas Instruments has touted as helping it to cement its dominance.

All three companies specialize in analog and embedded computing components. Once a sleepy backwater of the industry, this segment has enjoyed a resurgence as the list of uses and customers has grown in recent years.

Analog chips convert real-world things like sound and pressure into electronic signals, and the rush to add automation to factory equipment and buildings and to move cars toward a world in which they won’t need human pilots has stirred new demand.