LED chipmaker Epistar is reportedly to acquire fellow chipmaker Tekcore at NT$45 (US$1.46) per share to take control in Tekcore's operations.

Epistar declined to comment, while Tekcore noted that it hopes to maintain its relationship with Epistar as investor-investee.

Although both companies have denied the rumor, Epistar's stock in Tekcore has increased to 24% compared to 19% when Epistar and Tekcore first announced their strategic cooperation.

It is understood that Epistar has always wanted to increase its stake in Tekcore in order to gain firm control of Tekcore's operation. Epistar chairman Lee Biing-jye once said that he hoped to expand shareholdings in its strategic partners, but it will depend on the partners' willingness to sell, which clearly indicates Epistar's interests in Tekcore, but the operational team of Tekcore seems reluctant to let Epistar take over.