Micron Technology has approached Formosa Plastics Group to renegotiate its supply agreement with Inotera Memories and purchase price, in an attempt to increase its share of Inotera's operating income, according to industry sources.

Formosa Plastics, however, prefers to carry on the existing contract that it signed with Micron in 2013, the sources indicated. The supply agreement between Micron and Inotera is a five-year contract, and has been revised once to allow Micron to share more profits when Inotera makes earnings, the sources said.

Formosa Plastics and Micron are both the main shareholders of Inotera. Micron also reserves all of Inotera's manufacturing output.

In other news, market watchers forecast Inotera's earnings for 2014 will exceed NT$40 billion (US$1.3 billion).

Inotera has reported record net profits of NT$11.63 billion for the third quarter. Net profits for the first three quarters of 2014 totaled NT$33.49 billion, or NT$5.31 a share.