MediaTek has filed a statement with the Taiwanese bourse which is slightly ambiguous on whether it is in discussions with the graphics giant or not.
In a statement it merely said that it wasn’t the source of a rumour carried by the Chinese newspaper, Economic Daily News.
According to Digitimes, investors believe that it could merge with Nvidia as part of a plan to move into the burgeoning automotive market.
The semiconductor industry has seen a rash of mergers and consolidation over the last 18 months as the cost of research and development and the pace of change continues to make it an ultra competitive sector.
Nvidia has already forged partnerships with several major car outfits and has publicly said it wants to make waves in the automotive sector. A merger of the two firms would make sense as they both have different, but complementary, skills.