DRAM chipmaker Nanya Technology has disclosed plans to acquire an about 19% stake in Formosa Advanced Technologies (FATC), a backend house specializing in memory chips.

Nanya plans to buy up to 84.022 million FATC shares for NT$36.30 (US$1.19) each, or a total of NT$3.05 billion. The shares will be released by FATC itself, which will lower FATC's own holdings to 206 million shares, or an approximately 46.68% stake.

FATC shares closed at NT$35 on the Taiwan Stock Exchange (TWSE) on July 20, when the proposed shares acquisition was announced.

FATC has been Nanya's backend partner, said Nanya president Lee Pei-ing. Nanya is looking to enhance further its partnership with FATC through this equity investment, according to Lee.

FATC expects to recognize an estimated NT$886 million in gains from the sale of its own shares to Nanya.