Elite Semiconductor Memory Technology (ESMT), a Taiwan-based provider of niche-market memory chips, has announced plans to buy part of the facilities at one of Powerchip Technology's 12-inch wafer fabs.

To ensure the foundry capacity it needs, ESMT will sign contracts with Powerchip to acquire a portion of the production lines and related equipment located at Powerchip's P3 fab, according to a filing with the Taiwan Stock Exchange (TSE).

ESMT added that the facilities, which it plans to acquire, will not be removed after the deal reached. ESMT did not elaborate further.

ESMT made the announcement following a recent report suggesting ESMT and fellow IC design companies including Etron Technology were mulling the possibility of jointly taking over Powerchip's P3 plant. The facility reportedly is scheduled to be put on sale at the end of January.