Hynix and STMicro are reportedly in talks with one another to jointly build a $1.7B fab in China, according to news reports out of Korea.

STMicroelectronics would not confirm or deny the reports. However a news report from Reuters news service today quoted Hynix and the chief creditor for the Korean chipmaker, Korea Exchange Bank, as well as a Chinese government official, all as saying the talks were underway.

Hynix said it is considering a variety of options to fund a Chinese fab, and partnership with STMicro was one of them.The Chinese fab would make DRAM and flash

The two companies already collaborate on flash memory; in the spring of last year the two companies signed off on a five-year agreement in which Hynix would work with STMicro on NAND flash.