Will UMC merge with SiS?

The Inquirer is reporting that three of SiS' seven board seats are now occupied by people from UMC. This comes just a day after SiS and UMC announced a cross licensing deal, which has some speculating that a merger may be in the works.

A merger between SiS and UMC would be particularly interesting because SiS already has its own fabrication plant. That fabrication plant isn't doing all that poorly, either. It was recently the first to bring 0.13-micron graphics chip to market with the Xabre600. Still, a merger with UMC could significantly bolster SiS' ability to produce graphics and core logic chipsets.

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