The Korea Times reported that a deal between two of the world"s biggest memory companies, Hynix and Micron, is expected to be signed in January.
A memorandum of understanding is in preparation and an announcement may come as soon as the end of this week, the paper said.
But the deal is unlikely to involve any large amounts of cash, and would involve a share swap which the Times said would be around 20 per cent.
That was a stumbling block for Micron before, but perhaps the US Dramurai has decided that a strategic alliance would be the best way to proceed.
The two companies have been engaged in visits to each others fabs and facilities over the last week. It"s possible that the reports are over optimistic - Micron is known to have a very different view on what it wants out of any alliance compared to debt-ridden Hynix