Taiwanese dynamic RAM maker Nanya Technology is in talks with German manufacturer Qimonda to buy that company's stake in their chip joint venture Inotera Memories, representatives from both companies confirmed Wednesday.

Qimonda and Nanya jointly established Inotera in 2003, and made it one of the most advanced DRAM makers in Taiwan. The joint venture operates two DRAM factories.

There have been several rounds of discussions between the two companies but nothing has been finalized, said Isabel Chen, a spokeswoman for Qimonda in Taipei.

Discussions opened after Nanya signed a technology development agreement with U.S. DRAM maker Micron. Qimonda is Nanya's current technology partner. Nanya plans to let its current technology agreement with Qimonda expire once reaching the 50-nanometer etching size. For more advanced, sub-50-nanometer technology, Nanya will work with Micron.

The term nanometer refers to the smallest parts on a chip. The smaller the components, the more powerful and energy-efficient the chip. There are about three to six atoms in a nanometer and there are a billion nanometers in a meter.

The IDG News Service is a Network World affiliate.