Trading in GigaDevice Semiconductor has been suspended on the Shanghai Stock Exchange (SSE), paving the way for the NOR flash specialist to obtain shares of Integrated Silicon Solution (ISSI), according to industry sources.

Shares of GigaDevice have not traded since mid-September, and the suspension will remain pending "major asset restructuring." In a filing with the SSE, GigaDevice disclosed plans to acquire Uphill Investment.

Uphill is an investment vehicle created by China-based Summitview Capital, eTown MemTek, Hua Capital and Huaqing Jiye Investment Management for their bid to acquire ISSI. The US-based firm is already a wholly-owned subsidiary of Uphill.

ISSl specializes in the design, development and sales of SRAM, medium/high density DRAM, and EEPROM. ISSI also designs and markets NOR flash products and high performance analog and mixed-signal ICs.

GigaDevice is looking to merge with ISSI to expand its offerings to include DRAM products and will be able to provide comprehensive lines of DRAM and flash memory chips, industry sources believe.

In other news, previous reports quoted industry sources as saying a joint venture will be set up between GigaDevice and the Hefei city government of China's Anhui province. The JV could combine expertise of both GigaDevice and ISSI after they merge, the sources identified.