MediaTek leapt Wednesday in Taiwan's stock market on reports that the chipmaker might accept Chinese funds to expand operations on the mainland.

MediaTek rose 3.83% to an intraday high of 271 New Taiwan dollars before closing up 3.07% at NT$269.

Sources such as Taiwan's Economic Daily News reported Wednesday that MediaTek CEO Tsai Ming-kai recently visited major Chinese chipmakers with top management in tow. Because MediaTek already has ample liquid assets -- NT$168.9 billion ($5.13 billion) as of the end of September -- many speculate that the purpose of accepting investment would be to increase Chinese operations as Beijing undertakes efforts to develop high-tech industry.

State-owned Chinese chipmaker Tsinghua Unigroup has been showing interest in MediaTek. The Chinese company recently struck a deal to invest in Taiwanese chip packaging and testing company Powertech Technology.

By: DocMemory
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